Looming on the horizon is an ominous technical indicator called the “death cross” that warns that the Bitcoin bull market may be over.

According to analyst and cryptocurrency trader Rekt Capital on Twitter, the bearish signal is that whenever a death cross occurs, Bitcoin faces a deeper downside.

The “Death Cross” is a technical chart pattern that indicates the possibility of a major sell-off or a strong downtrend.

It appears on the chart when the short-term moving average of an asset crosses below its long-term moving average.

The most common moving averages used in this pattern are usually the 50-day and 200-day moving averages.

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1.

A bullish golden cross occurs when the 50 EMA (blue) crosses above the 200 EMA (black)

Golden Crosses is ahead of a lot of upside #BTCprice (green)

The bearish death cross occurs when the 50 EMA crosses below the 200 EMA (red)

Death crosses precede many negative aspects of BTC dollars pic.twitter.com/NTsJN3aRiE

– Rektcapital June 1, 2021

Downtrend confirmation:

The analyst called “Rekt Capital” mentioned that there is a lot of delay before the death cross occurs and that a lot of selling may already have occurred.

Since its all-time high of $65K, bitcoin has already lost 43.5% to current levels, which is unusual for correction volumes.

However, a tell-tale technical signal and the focus of this analysis could mean that there is a lot of pain ahead.

The analyst compared the 2017 bull market and how long it took for the death cross to occur, telling:

When Bitcoin peaked in 2017, it took 107 days for the death cross to occur, or 3.5 months.

Read:Will Bitcoin bring back the 2017 bullish scenario?

And during those 3+ 3 months… bitcoin has fallen 70% from its peak of $20,000.

He added:

Once the April 2018 death cross occurred, Bitcoin experienced an additional 65% correction to the downside as the coin’s price dropped to $3,200 in December of the same year.

The mini-assembly in mid-2019 was similar as the death cross appeared 149 days after the peak.

By this time, bitcoin prices had fallen 53%, but an additional 55% dump came after the crossover.

Will history repeat itself for Bitcoin?

Analysts have tried to predict when the death cross will occur, as noted by Rekt Capital:

If history repeats, you could see the Death Cross occur sometime between late July or early September 2021.

Using previous numbers from previous cycles, it was suggested that a 55% drop from the death cross that appears at roughly similar levels from the peak could lead to prices dropping to around $18,000.

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He added:

A drop like this would bring prices back to the 200-week moving average which has traditionally been major support and long-term buying areas.

Which is related to the 200-week EMA which tends to present great opportunities with huge ROI for Bitcoin investors.

At press time, Bitcoin is trading at $37,260 according tocoinmarketcap“.

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