Arab Press

بالشعب و للشعب
Tuesday, Oct 07, 2025

Bitcoin Dips Below $40K as ‘Death Cross’ Looms on Price Charts

Bitcoin Dips Below $40K as ‘Death Cross’ Looms on Price Charts

The past record of the “Death Cross” as an indicator of deeper drawdowns is mixed.
They call it bitcoin’s “death cross” – a bearish indicator that appears when the 50-day moving average (MA) dips below the 200-day MA.

The ominously named chart pattern looks set to be confirmed this week amid mounting concerns of faster liquidity withdrawal by the U.S. Federal Reserve (Fed), a bearish development for bitcoin and asset prices in general.

On Monday, the bitcoin (BTC) price dipped briefly below $40,000 for the first time since September. As of press time, the largest cryptocurrency by market cap was changing hands at $40,834, based on CoinDesk pricing, down 12% so far in 2022, one of bitcoin’s worst-ever starts to a year.

Goldman Sachs foresees the Fed raising borrowing costs at least four times by the end of 2022, versus its previous prediction of three rate hikes, according to Bloomberg. The investment banking giant also expects the central bank to downsize its balance sheet from July.

Friday’s U.S. labor market report, which showed that unemployment rate dipped to 3.9%, has strengthened the case for the Fed to hike rates concurrently with the end of asset purchases in March. According to the CME Group’s FedWatch Tool, investors were pricing a 73% probability of a 25 basis point rate hike in March, up from 61% last week.

Fears of a hawkish Fed gripped the bitcoin market toward the end of last quarter after the central bank shifted its focus to inflation control from maximum employment. In December, the Fed announced at least three rate hikes by the end of 2022 and an end of the asset purchase program by March.

Bitcoin peaked near $69,000 on Nov. 10 and has declined by nearly 40% since. The cryptocurrency slipped over 12% in the last seven days to Jan. 9, registering its biggest weekly drop since early December. The impending death cross, coupled with the souring macro outlook, may bolster overall bearish sentiment.

That said, the technical indicator’s past record as a predictor of bear markets is mixed. According to research by Kraken, many of bitcoin’s previous death crosses, including those seen in 2014 and 2018, coincided with “either a sell-off in the days that followed or a continued macro downtrend that confirmed a bear market.”

However, death crosses witnessed last June, late March 2020 and October 2019 were bear traps, or false signals that marked major price bottoms. The consolidation seen after the mid-June death cross resolved in a fresh bull run, as seen in the featured image.

Moving average crossovers are unreliable as standalone indicators, given they are based on backward-looking data and tend to lag prices. The market is often oversold and due for a bounce by the time the crossover is confirmed, as was the case in June last year and late March 2020.
Comments

Anna 4 year ago
Just bet those who bought it at 69.000 are not bragging to their frinds now. The old saying a fool and his money are soon parted

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Syria Holds First Elections Since Fall of Assad
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
×