- When the 50-day SMA drops below the 200-day SMA in the Bitcoin market this indicates an ongoing bearish trend may appear.
- The Bitcoin price declined from its peak at $83,105 to reach $74,604 as the regulatory death cross strengthened negative market expectations.
- The critical support threshold of $74,000 needs to maintain its position because its loss may trigger additional price drops that could reach $70,000.
April 7, 2025 — Bitcoin’s bearish crossover on the daily chart has raised fresh concerns among traders, signaling potential downside pressure. The digital asset has plunged to $76,350.91 in the last 24 hours causing its most significant daily dip of recent months while it currently trades at this level.
Bitcoin’s Death Cross Signals Decline, Support at $74K
According to analyst Ali, Bitcoin’s daily chart has revealed a critical death cross formation—a bearish technical indicator that occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA. The historical interpretation of this crossover indicates a declining trend might occur throughout the long term. The chart shows the crossover circle at the $87,000 region to reveal the weakness between short-term momentum and long-term metrics.
As of publication, Bitcoin has fallen from a recent high of $83,105 to a session low of $74,604, placing the current price near the lower end of the day’s range. BTC now locates itself close to critical support areas after a severe price drop while showing no indication that its bearish pattern will shift soon.
200-Day SMA Rejection Sparks Liquidation and Selling Surge
The price pattern in the chart shows a decreasing movement starting from early March following an initial price increase. The formation of candlestick patterns indicates rising investor reluctance to sell their shares after a resistance attempt against the 200-day SMA failed. The rising price gradually constructed an exit necessity yet the point of crossover rejection started a massive liquidation process.
Downward price movements cause spikes in volume data which proves that major market participants join the selling activity instead of merely adding volatility through low volume activity.
Death Cross Signals Risk, $74K Support Crucial for Bitcoin
With the death cross confirmed, market participants may reassess risk exposure as historically, this pattern has often preceded sustained downtrends. The occurrence of death crosses typically leads to additional market decreases although these instances do not guarantee enduring bear markets. Daylighting the death cross at the same time as the market price plunged requires investors to maintain cautious positions for upcoming market periods.
Repairs of the $74,000 support level will be essential to track. Failure of this level could trigger new downside that might extend to $70,000. The signal may indicate a temporary setback instead of adopting a bearish trend if Bitcoin succeeds in staying above $80,000.
Bitcoin Forward Outlook
Traders will observe upcoming market action for confirmation between support-level breakdowns or volume-driven upward reactions in the upcoming sessions. The present market position along with technical indicators suggests further volatile movements will occur during upcoming sessions.
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