Cryptocurrency analyst Colin Tokes Crypto has commented on the sharp decline in Bitcoin (BTC) over the past few days and issued an important warning that is causing controversy in the market.
According to the analyst, the death cross formation that occurred a few days ago has often shown a bottom or a strong reaction, but this time it did not have the same effect. This suggests that Bitcoin may have already given up its $126,000 peak.
Colin pointed out that this structure has only worked this way once in history, on January 14, 2022, at the start of the massive bear market that began immediately after the 2021 bull market. Rather than bringing new highs, the death cross at the time heralded a long-term downtrend. According to the analyst, Bitcoin’s reaction to the last cross a few days ago is very similar to that period.
Colin Talks Crypto noted that this similarity suggests that the peak of the current cycle may have already been reached, but did not completely rule out the possibility of a mid-term rally. “We expect a temporary recovery in the coming months, similar to what we see in a strong bear market,” he said. “However, this is more likely to be a recovery in a bearish trend, rather than a bull market to new all-time highs.”
For those unfamiliar with the concept of “death cross,” Colin explained the technical definition. That means the 50-day moving average is below the 200-day moving average. This pattern often shows a sharp decline followed by a bottom and a quick recovery, but this behavior broke down in 2022.
*This is not investment advice.
