Bitcoin Correction Warning: Testing 365-Day MA & Death Cross
Bitcoin is trading near $103,500 and testing its 365-day moving average—a key support that has historically triggered major rallies or steep declines. A clear break below this line in 2022 preceded a 66% drop. Analysts also note the looming Death Cross between short-term and long-term moving averages, while resistance persists in the $107,000–$118,000 zone due to long-term holder selling and macro headwinds.
Cycle studies show Bitcoin tops about 1,064 days after a market low. The recent peak near $126,000 fits this pattern, suggesting a macro downtrend may have begun. If history repeats, a bottom could form around October 2026, possibly between $38,000 and $50,000.
Traders should watch the 365-day MA test, Death Cross signal, and resistance barrier. These factors underline a Bitcoin correction in the short term and frame expectations for a deeper, multi-year decline.
Bearish
The article highlights signs of a looming Bitcoin correction: a test of the 365-day moving average that previously led to 66% losses, an imminent Death Cross, and strong resistance at $107,000–$118,000. Cycle patterns matching past downtrends reinforce bearish momentum. Historically, breaking below long-term averages signals deeper declines. These technical factors suggest traders should prepare for a sustained pullback, likely extending into a multi-year correction.