Bitcoin's Death Cross Signal Triggers Fresh Selloff as BTC Tests Critical Support Zones

A newly formed weekly death cross has emerged as one of the most bearish technical indicators for Bitcoin, signaling potential further downside as BTC faces mounting selling pressure. The death cross—where the 21-week moving average crosses below the 50-week average—typically precedes major cycle bottoms and has historically served as a warning flag for macro reversals. With Bitcoin currently trading near $66,770 after a steep 8.84% decline over the past 24 hours, analysts are increasingly concerned about the cryptocurrency’s ability to hold key support levels.

Death Cross Forms as Weekly Technicals Roll Over

According to Keith Alan, cofounder of Material Indicators, Bitcoin’s recent weakness was not driven by headline risk but rather by deteriorating technical structure that had been developing for weeks. Alan pointed specifically to the newly formed weekly death cross as the primary technical catalyst. “This move had nothing to do with narratives,” Alan stated. “We’ve seen it developing in the charts for over a month.”

The death cross signal carries particular weight in Bitcoin’s current context, as it aligns with technical deterioration on shorter timeframes. BTC has lost both its 4-hour 200-period Simple Moving Average (SMA) and Exponential Moving Average (EMA), weakening the cryptocurrency’s near-term structure. Alan suggests Bitcoin may attempt a bounce near the 100-week SMA, currently positioned around $86,900—a level that could provide temporary relief if tested.

Price Retest and Consolidation Range Breaks Down

Data from TradingView reveals BTC has retested critical zones as global risk sentiment deteriorates. The pullback coincides with renewed US-EU trade tensions linked to proposed tariff actions, a development that pushed safe-haven assets like gold and silver to fresh all-time highs while pressuring risk assets including cryptocurrencies.

Trader Daan Crypto Trades observed that Bitcoin has clearly fallen back into its well-established consolidation range. “Now fully back into the ~$84K–$94K range it has spent the past two months in,” he noted on X. “Breakout failed — and it doesn’t make for a pretty look.” This breakdown of the attempted breakout structure has refocused the market on lower support levels and shifted analysis toward the question of whether Bitcoin can reclaim upside momentum.

Critical Support Levels and Yearly Opens Under Pressure

Technical analysts are now closely monitoring key yearly opening prices as potential support or breakdown points:

• 2025 yearly open: approximately $93,500
• 2026 yearly open: approximately $87,000

Rekt Capital emphasized that Bitcoin must reclaim the $93,500 level throughout the week to preserve its weekly breakout structure. “Bitcoin will need to find a way to reclaim $93,500 to confirm this as a successful retest,” the analyst wrote. Failure would place the 2026 yearly open near $87,000 directly in focus—a level some traders expect to be tested.

Daan Crypto Trades added insight into the historical pattern, noting that a wick below the yearly open is relatively common. “It’s rare to see no wick below the yearly open,” he explained. “Better to get that out of the way sooner rather than later.”

Liquidations Spike as Selling Accelerates

Market stress is evident in derivatives data. According to CoinGlass, more than $360 million in liquidations occurred over the past 24 hours as US futures markets opened and selling pressure intensified. While some analysts attribute the spike to trade-war headlines, many argue that macro news merely served as a trigger rather than the underlying cause—the technical deterioration was already building the conditions for forced selling.

Bearish Targets Resurface: $58K–$62K Zone Back in Play

Veteran trader Peter Brandt offered the most aggressive bearish scenario, suggesting Bitcoin could revisit the $58,000–$62,000 range—levels not seen since October 2024. “58k to 62k is where I think it is going,” Brandt wrote on X. “If it does not go there, I won’t be ashamed. I’m wrong 50% of the time.” While Brandt acknowledged uncertainty in his forecast, his call reflects growing caution among technical traders as Bitcoin struggles to reclaim lost momentum and build fresh support above current levels.

Market Outlook: Structural Reset or Renewed Downtrend?

Despite the near-term weakness, several factors leave room for an alternative outcome. Leverage has already been flushed from markets, open interest remains well below October highs, and spot demand has not collapsed entirely. This combination suggests that if further downside occurs, it could serve as a structural reset rather than a trend reversal—particularly if long-term holders continue accumulating on weakness.

For now, however, Bitcoin remains vulnerable unless bulls successfully reclaim the $93,500–$98,000 zone. With downside liquidity increasingly concentrated below, the death cross signal serves as a critical technical warning that demands respect from both bulls and bears navigating this uncertain period.