Are Bitcoin And The S&P 500 Heading For A Death Cross?

Comments
Loading...
Zinger Key Points

Technical indicators alongside macro-economic factors are prompting analysts to predict further downward momentum for the SPDR S&P 500 ETF Trust SPY and Bitcoin BTC/USD.

What Happened: In a podcast on Thursday, prominen analyst Benjamin Cowen warned that the S&P 500’s decline could extend into April, resembling past market downturns that have had ripple effects across both equities and crypto.

While March has historically marked a bottoming point during corrections—such as the financial crisis and pandemic crash—Cowen notes that sometimes the downturn extends into April.

One key date is mid-April, when the next inflation print is released. With new tariffs in focus, investors are watching closely for potential market reactions.

Glassnode data has flagged a death cross forming in Bitcoin's on-chain data, with BTC's 30-day volume-weighted price crossing below the 180-day. Historically, such signals have preceded 3–6 months of downside.

Also Read: 99% Of Americans Know Bitcoin, But Only 91% Know Dogecoin: Why?

Why It Matters: Cowen also pointed to a critical S&P 500 metric: the S&P 500 divided by the money supply, which currently sits at levels similar to past major market rejections, including 1998, the financial crisis, the pre-pandemic high and 2021/2023 resistance levels.

The 1998 rejection led to a 20–23% market drop. Cowen believes the current 10% decline could extend further to 20%, echoing that historical precedent.

He cautions against panic, reminding investors that not all 20% declines trigger recessions. In 1998, the S&P 500 saw a significant rally after its correction, which could signal a similar setup in 2025.

What's Next: Cowen suggests watching for a potential market bottom in that first or second week of April, with an 11-week correction timeline possibly aligning with the next FOMC meeting in May.

He also sees a potential death cross forming on the S&P 500, which historically has been followed by a short-term rally before any further declines.

If the pattern holds, both Bitcoin and equities could be in for a counter-trend bounce before the market’s next major move.

Read Next:

Image: Shutterstock

Got Questions? Ask
Which S&P 500 ETFs may face declines?
How could Bitcoin react to inflation data?
Which sectors might benefit from market corrections?
What financial indicators suggest a market bounce?
Which crypto assets are best positioned for recovery?
How will tariffs impact market dynamics in April?
Which investment strategies work during declines?
What historical patterns are relevant for current trends?
How might hedge funds adjust their positions?
Which tech stocks could show resilience in downturns?
Market News and Data brought to you by Benzinga APIs

Posted In: