Bitcoin’s recent performance has sparked concerns as it trends toward a “death cross,” a technical analysis term indicating a potential bearish market. According to a report by Coindesk on November 16, this phenomenon arises when short-term momentum wanes compared to longer-term trends. Despite its ominous name, a death cross can also precede positive market movements.
Currently, Bitcoin is down approximately 25% from its peak of $126,000 recorded in October 2023. This marks the fourth occurrence of a death cross since the current market cycle began in 2023. Notably, previous death crosses have coincided with “major local bottoms,” as highlighted by Coindesk. The earlier lows occurred in September 2023 at $25,000, August 2024 at $49,000, and this April at $75,000, largely influenced by uncertainties surrounding U.S. tariff policies.
As of now, Bitcoin has fallen to around $94,000. Historically, market lows have been established just before a death cross, raising questions about whether this pattern will repeat itself. Last week, Bitcoin experienced a nearly 9% decline, largely attributed to investor sell-offs triggered by a downturn in the technology sector. Many cryptocurrency investors also hold interests in tech companies, which have recently faced scrutiny over their spending on artificial intelligence.
Following its record high in October, Bitcoin encountered one of the largest liquidation events in digital asset history, a situation exacerbated by an unexpected tariff announcement from the White House. The volatility surrounding Bitcoin continues to capture attention, with analysts monitoring its trajectory closely.
Challenges in Blockchain Payments
In related developments, PYMNTS reported on potential limitations within blockchain-based payment systems. The report discussed a prevailing industry narrative suggesting that once blockchain achieves critical mass in one area—such as cross-border transfers or merchant payments—its utility will expand into adjacent domains.
However, the payments industry is characterized by significant heterogeneity. The challenges that blockchain resolves in one sector may not easily transfer to others. The report notes that future blockchain payment expansions are likely to occur through a series of targeted vertical footholds rather than through broad-based platform growth. Each foothold may address specific economic challenges, including invoice reconciliation, loyalty point settlement, corporate treasury netting, and tax operations.
As Bitcoin approaches critical technical levels, market participants remain vigilant, weighing the implications of a potential death cross against broader trends in the cryptocurrency and blockchain landscapes.
