Bitcoin before possible setback: 'Dead Cross' signal points to price correction and test of support at $ 75,000

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Bitcoin and the 'Dead Cross' signal: a sign of market corrections?

Bitcoin (BTC) could have gone into a potential cooling phase of the market, as is evident from the on-chain index analyzed by Cryptoquant. A central event that is observed is the appearance of a "Dead Cross" signal in which the Thermo Cap falls below the Realized Cap. In the past, this situation has often correlated with significant price corrections from Bitcoin, such as in 2022.

The meaning of the 'Dead Cross' signals

The 'Dead Cross' signal describes a bearish crossover that indicates that a downward movement of the market could be imminent. The Thermo Cap, which represents the entire cumulative dollar value of Bitcoin, is exceeded by the Realized Cap, which reflects the aggregated network evaluation based on the last paid prices for each coin. According to the cryptoquant analyst Bilal Huseynov, the Realized Cap reflects the actual economic value of the network and filters out lost or long-term Bitcoin stocks.

historical precedent and current market situation

Historical analysis shows that such a 'Dead Cross' pattern often signaled the beginning of a significant market correction. For example, the Bitcoin Prize in 2022 fell from almost $ 45,000 to around $ 16,000 after the occurrence of a similar signal. At the moment, the Thermo Cap/Realized Cap indicator flashes red again and arouses concern among some on-chain analysts about a possible temporary price reversal.

Huseynov indicated that based on the history of this signal, a possible test of the support of $ 75,000 could be imminent before Bitcoin can develop a new upward dynamics. Despite these on-chain warning signs, some analysts argue that the basic strength of Bitcoin, supported by persistent institutional demand, remains intact.

institutional strength and market movements

An example of this institutional demand is the investment company Metaplanet, which recently acquired another 160 BTC worth over 13 million USD. This means that the total stock of the corporate stocks amounts to 4.206 BTC, which shows the continued accumulation of Bitcoin.

What does that mean for traders?

Large institutional movements such as those of MetAplanet offer certain support and clear signals for a potentially bullish market dynamics. However, short -term traders should be careful and remain attentive. Historical data indicate that indicators such as the 'Dead Cross' often go hand in hand with noticeable price declines, even if the long -term upward trend may remain.

The crucial question remains whether Bitcoin is able to defy this historical on-chain pattern or whether a market cooling phase is actually imminent. Traders will have to observe the developments in the coming weeks in order to be able to make sound decisions.