Bitcoin Death Cross: Is This the Beginning of a Bear Market or a Buy Opportunity?

The cryptocurrency market has experienced shockwaves as Bitcoin displayed its “death cross” technical indicator on April 6, 2025. On April 6, 2025, Bitcoin entered a death cross phase through the average 50-day moving average, falling beneath the 200-day moving average. This event has typically been linked to market downturns and bearish trends, but it fails to establish a lengthy decrease in value. Investors now face uncertainty over Bitcoin’s market direction because of this development between a major downturn and another buying opportunity.

What is the Bitcoin “Death Cross”? Understanding the Signal

The expression “death cross” creates a strong impression by defining a typical technical pattern that emerges when the 50-day short-term average exceeds the 200-day benchmark. According to the results shown on April 6, Bitcoin has experienced eleven death crosses since its initial launch. Price fluctuations linked to the event have led to substantial market drops, yet this pattern has also indicated short-term price reductions that eventually returned to previous levels.

Image 1: BTC/USD 1-day death cross history, provided by Marie Poteriaieva, published on TradingView

Each death cross occurrence in Bitcoin created different market results while establishing essential knowledge about these events. During three major bear markets, 2014-2015, 2018, and 2022, Bitcoin experienced its most extensive drawdown based on this pattern. The price of Bitcoin decreased substantially by 55% to 68%, while the bear markets persisted between 9 and 13 months during these specific instances.

The effect of death changes from one event to another. Of the seven death crosses Bitcoin experienced other than major tasks, there were no similar dramatic price drops. The Bitcoin price showed modest falls between 27% and no change at these moments, while many of these warning signs helped identify new price bases that started upward trends.

Bitcoin Price Resilience: Can It Overcome This Death Cross?

Historical evidence demonstrates that death crosses usually indicate the start of price drops, but Bitcoin has proven capable of resisting these trends numerous times. According to James Butterfill, the Head of Research at CoinShares, Bitcoin’s average price falls by -3.2% one month after a death cross occurs, but the long-term trajectory shows positive trends. The Bitcoin price shows an increase following death crosses that normally occur within three-month periods.

Image 2- BTC Death Cross Events, provided by James Butterfill, published on X, April 8, 2025.

This indicator does not establish an automatic length of downtrend movement in stock prices. A death cross appears ahead of a potential bear market but temporarily pauses market recovery. Investors commonly treat the death cross pattern as a sign to purchase Bitcoin at reduced pricing, which likely explains why the present death cross receives less concern than usual. 

Image 3 – Bitcoin Death Cross During The Bull Market, provided by Mister Crypto, published on X, March 29, 2025.

The other participants in the market choose not to consider the death cross formation. Crypto analyst Mister Crypto viewed the ongoing death cross formation as an event that would trigger a BTC price rally instead of a market decline. “The trap is set again.’’ The upcoming rally of 2025 will become the most despised movement of the year, according to his prediction posted with a chart displaying prior incorrect signals in the cycle.

Conclusion: Should Investors Buy the Dip?

The Bitcoin death cross is a market warning, yet it fails to predict extended bear markets. The death cross phenomenon in history indicates brief market pullbacks that can lead to upward price movements during subsequent months after the pattern emerges. Bitcoin‘s key attributes, namely its solid fundamentals alongside rising institutional investments and limited coin issues, support the likelihood that this signal will become obsolete.

The current market situation presents an opportunity for investors to obtain bitcoin at reduced prices ahead of its future market gain. Investors must exercise caution during all market activities and follow price fluctuations and risk control techniques to make sound decisions.