London Daily

Focus on the big picture.
Thursday, Sep 04, 2025

Bitcoin Dips Below $40K as ‘Death Cross’ Looms on Price Charts

Bitcoin Dips Below $40K as ‘Death Cross’ Looms on Price Charts

The past record of the “Death Cross” as an indicator of deeper drawdowns is mixed.
They call it bitcoin’s “death cross” – a bearish indicator that appears when the 50-day moving average (MA) dips below the 200-day MA.

The ominously named chart pattern looks set to be confirmed this week amid mounting concerns of faster liquidity withdrawal by the U.S. Federal Reserve (Fed), a bearish development for bitcoin and asset prices in general.

On Monday, the bitcoin (BTC) price dipped briefly below $40,000 for the first time since September. As of press time, the largest cryptocurrency by market cap was changing hands at $40,834, based on CoinDesk pricing, down 12% so far in 2022, one of bitcoin’s worst-ever starts to a year.

Goldman Sachs foresees the Fed raising borrowing costs at least four times by the end of 2022, versus its previous prediction of three rate hikes, according to Bloomberg. The investment banking giant also expects the central bank to downsize its balance sheet from July.

Friday’s U.S. labor market report, which showed that unemployment rate dipped to 3.9%, has strengthened the case for the Fed to hike rates concurrently with the end of asset purchases in March. According to the CME Group’s FedWatch Tool, investors were pricing a 73% probability of a 25 basis point rate hike in March, up from 61% last week.

Fears of a hawkish Fed gripped the bitcoin market toward the end of last quarter after the central bank shifted its focus to inflation control from maximum employment. In December, the Fed announced at least three rate hikes by the end of 2022 and an end of the asset purchase program by March.

Bitcoin peaked near $69,000 on Nov. 10 and has declined by nearly 40% since. The cryptocurrency slipped over 12% in the last seven days to Jan. 9, registering its biggest weekly drop since early December. The impending death cross, coupled with the souring macro outlook, may bolster overall bearish sentiment.

That said, the technical indicator’s past record as a predictor of bear markets is mixed. According to research by Kraken, many of bitcoin’s previous death crosses, including those seen in 2014 and 2018, coincided with “either a sell-off in the days that followed or a continued macro downtrend that confirmed a bear market.”

However, death crosses witnessed last June, late March 2020 and October 2019 were bear traps, or false signals that marked major price bottoms. The consolidation seen after the mid-June death cross resolved in a fresh bull run, as seen in the featured image.

Moving average crossovers are unreliable as standalone indicators, given they are based on backward-looking data and tend to lag prices. The market is often oversold and due for a bounce by the time the crossover is confirmed, as was the case in June last year and late March 2020.
Comments

Anna 4 year ago
Just bet those who bought it at 69.000 are not bragging to their frinds now. The old saying a fool and his money are soon parted

Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
×