Bitcoin Death Cross That Triggered 65% Plunge Reappears, Warning of Drop to $30,000

▲ Bitcoin Plunge

Bitcoin (BTC) has formed what is considered the most dangerous signal on the chart—a Death Cross—raising warnings that its price could retreat to the $30,000 level and plunging the cryptocurrency market into fear.

According to cryptocurrency media outlet CryptoPotato on February 23 (local time), Bitcoin recently recorded a Death Cross, where the short-term moving average falls below the long-term moving average, signaling entry into a full-fledged downtrend. In technical analysis, this phenomenon is regarded as a powerful indicator of a long-term bearish phase and is fueling investors’ selling sentiment. The fact that previous Death Cross occurrences were followed by price drops of several dozen percentage points is amplifying concerns that a large-scale correction may follow this time as well.

Some analysts warn that if the current downturn persists, Bitcoin could fall to $30,000—half of its current level. Bitcoin has lost the strong upward momentum seen in the first quarter and is struggling to defend the $60,000 support line. Market sentiment has already entered a stage of extreme fear, and the absence of strong buying pressure has become a key factor intensifying downward pressure.

A closer look at technical indicators makes Bitcoin’s weakness even more evident. The Moving Average Convergence Divergence (MACD) is expanding further into negative territory, while the Relative Strength Index (RSI) remains below its benchmark level. A thick resistance zone has formed around $65,000, triggering waves of selling each time a rebound is attempted. This pattern, typical of a bear market, suggests that building stronger support levels is urgently needed.

The macroeconomic environment is also unfavorable for Bitcoin. Slower-than-expected progress in easing inflation has heightened uncertainty surrounding the Federal Reserve’s interest rate policy, weighing on asset markets overall. A sharp decline in capital inflows through spot Bitcoin ETFs has further weakened the market’s fundamentals. As preference for safe-haven assets strengthens, investors are opting to increase cash allocations rather than hold Bitcoin.

Bitcoin is currently testing support in the low $60,000 range, with overlapping technical bearish signals increasing downside volatility. Many analysts believe it will be difficult to expect resilient recovery until a large-scale capitulation phase occurs. Market participants are closely monitoring whether key support levels break while focusing on risk management.

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