Bitcoin's Death Cross Signals Bearish Trend Amid $1.4B Crypto Sell-Off

Bitcoin's Death Cross Signals Bearish Trend

Bitcoin, the leading cryptocurrency, has formed its first major death cross in 2025, a technical indicator signaling prolonged downward momentum. This occurs as the 50-day moving average falls below the 200-day moving average, marking a shift from the bullish sentiment that began the year when Bitcoin reached an all-time high of $109,114 on January 20.

Crypto Market Sell-Off Intensifies

The death cross coincides with a severe market sell-off, with over $1.4 billion in liquidations across crypto exchanges in the past 24 hours. Long positions were disproportionately affected, accounting for $1.22 billion of the losses. Bitcoin's price dropped to lows of $74,420, with major tokens losing nearly 20% in value. This marks the third consecutive day of declines, with Bitcoin down 6.84% to $77,172 at press time.

Historical Context and Market Impact

The sell-off has drawn comparisons to "Black Monday," the 1987 market crash, with macroeconomic uncertainties and aggressive liquidations driving investors toward safe-haven assets. Glassnode reports $58.8 million in BTC futures liquidations, with longs bearing the brunt at $42.1 million compared to $16.6 million in shorts. BTC futures open interest stands at $34.5 billion, showing a broader downtrend despite a minor recovery from $33.8 billion on April 3.

This death cross and the accompanying sell-off underscore a challenging period for crypto investors, with market sentiment turning increasingly bearish.