After a short surge on Friday, Bitcoin has struggled to maintain its position over the $30,000 mark. It has already corrected 3% since then and is now trading at $29,330 with a market worth of $557 billion.
As this occurs, Bitcoin might be in for another huge price correction, and if history repeats itself, it could go all the way to $15,000 or less. The author of Rekt Capital Newsletter has given a thorough case study of previous bitcoin death cross cycles and the subsequent Bitcoin corrections.
So, what exactly is a death cross? On a technical chart, a Death Cross happens when the 50 EMA crosses UNDER the 200 EMA. Bitcoin has gone through many death cross cycles over the last decade.
The author offers historical examples, such as how the largest crypto underwent an even steeper correction following the demise of the cross. For example, in 2013, Bitcoin corrected 70% after the death cross; in 2017, it corrected 65% after the death cross; and in 2019, it corrected 55% after the death cross.
However, following the death cross, Bitcoin really rose significantly in 2020 and 2021. In both cases, the death cross appeared at the bottom.
According to Rekt Capital analysts, BTC is more likely to follow the trajectory of 2013, 2017, and 2019. This is due to the fact that Bitcoin has already corrected more than 36% since January 2022, rather than reversing the trend.
In addition, Bitcoin has fallen 43 percent from its top in November 2021 before striking the death cross. A comparable 43 percent retracement following the death cross would imply that the BTC price may hit $22,700.
The king crypto might reach $18,000 if it corrects by 5% from the January 2022 death cross. A 65 percent correction would imply a low of $13,800. Bitcoin would reach a low of $11,500 if it fell 71%. The BTC price would have fallen by more than 80% since its high in November 2021.
According to Rekt Capital, “what’s noteworthy about the scenario of a -43 percent post-Death Cross catastrophe is that it would result in a $22,000 loss.” According to the expert, it would provide wonderful purchasing chances for BTC investors with significant ROI.