Bitcoin Faces Worst Rout Since April

Bitcoin suffered its steepest single-day decline since April, with the death cross pattern now confirmed on the daily chart. This technical indicator, where the 50-day moving average crosses below the 200-day moving average, historically signals prolonged bearish momentum. The sell-off was exacerbated by macroeconomic headwinds, including rising Treasury yields and a stronger US dollar, which have drained liquidity from risk assets.

Prediction markets reflect growing pessimism, with odds of a deeper correction rising sharply. However, the current price zone near $60,000 has historically attracted dip-buying interest. On-chain data shows long-term holders remain resilient, with accumulation addresses still adding to positions. A clear reclaim of the $65,000 level would be needed to invalidate the bearish setup, but the path of least resistance appears lower in the near term.

While the technical outlook is concerning, the broader bull cycle remains intact unless Bitcoin loses the $55,000 support. Traders should brace for potential volatility as the market digests these signals.

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