The Bitcoin's Death Cross Pattern Played Out Again: Here's What It Means

Bitcoin's BTC/USD rally came as no surprise to Benjamin Cowen, founder of Into The Cryptoverse, who had forecasted this move even before the death cross.

What Happened: Cowen explained in a recent podcast that the pattern has played out again as Bitcoin rallied from $77,000 to $91,000 since the death cross occurred.

The technical event, which happens when the 50-day moving average crosses below the 200-day moving average, typically triggers panic selling despite historically marking local bottoms.

Cowen had purposely warned viewers about this pattern a week before the death cross occurred, saying: “If you want to sell your Bitcoin, history shows you should not do it on the day of the death cross. If you’re going to do it, you should do it a few months before the death cross or at least a few weeks after it.”

For investors who panic-sold during the death cross, Cowen offers perspective: “We’ve all made the mistake probably in the past of selling on the day of the death cross.

As they see the price go up, they get nervous. At some point they FOMO back in, and then we figure out if it’s a higher low or a lower low.”

Why It Matters: The analyst points to multiple historical examples supporting this pattern. In 2023 and 2024, death crosses led to significant rallies that eventually produced new all-time highs.

Even in bear markets like 2022 and 2019, Bitcoin formed local bottoms around death crosses before staging substantial recoveries.

Beyond price action, Bitcoin dominance has also risen from 61% to 64%, reinforcing Cowen's view that Bitcoin offers better risk-adjusted returns than altcoins in a tightening macro backdrop.

When liquidity is tight and the Fed isn't pivoting yet, Bitcoin tends to be the safer bet, he added.

Also Read: Bitcoin Will Outperform As Global Liquidity Expands, TradFi Evolves, Says Arthur Hayes

What's Next: Cowen identifies $84,000 — the current level of the 50-day SMA — as the next critical support to watch.

"Before Bitcoin can attempt a new all-time high, it will likely test the 50-day SMA," he explained, noting that previous bull markets saw this level hold firm during pullbacks.

The key question now is whether any future pullback will form a higher low (bullish) or a lower low (potentially concerning).

“A right-translated cycle, I think, we do not want to go below the 2024 high on a weekly close. As long as we’re above that, I don’t think confidence is yet lost,” he states.

Read Next:

• How Traders Can Make Money When Bitcoin Trades Sideways: 10x Research

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