As 2025 came to a close, Bitcoin (BTC) ended on a negative note, trading more than 30% below its all-time highs and grappling with the formation of a death cross\u2014a technical indicator that traditionally precedes significant price corrections.\u00a0<\/span><\/p>\n Currently hovering just above $89,200, Bitcoin recently saw its 10-week and 50-week<\/span> simple moving averages<\/span><\/a> (SMAs) cross paths on December 8, a development highlighted by market analyst Ali Martinez on social media site X (previously Twitter).<\/span><\/p>\n Martinez <\/span>emphasized <\/span><\/a>the importance of watching the behavior of these two moving averages on the weekly chart. Historically, each time Bitcoin has registered a death cross between the 10-week and 50-week SMAs, it has been followed by substantial corrections.\u00a0<\/span><\/p>\n As seen in the cryptocurrency\u2019s weekly chart below, past occurrences of such crossovers have led to price declines of 67% in September 2014, 54% in June 2018, 53% in March 2020, and 64% in January 2022.\u00a0<\/span><\/p>\n With the recent death cross-forming, Martinez suggests that if history is any guide, Bitcoin could face a <\/span>correction <\/span><\/a>between 50% and 60%, which would place its price anywhere between $50,000 and $38,000.\u00a0<\/span><\/p>\n Adding another layer of complexity to the analysis, market expert Mags has outlined two potential scenarios for Bitcoin\u2019s near future.\u00a0<\/span><\/p>\n Following Bitcoin\u2019s downturn since its October highs above $126,000, it has been trading around the $85,000 mark for several weeks. Coinciding with this, Tether\u2019s USDT dominance has broken out of its previous range, currently maintaining levels above the breakout zone.<\/span><\/p>\n Since Bitcoin and USDT dominance exhibit an inverse correlation, Mags has identified <\/span>two main scenarios<\/span><\/a> moving forward. The first, a bullish scenario, hinges on the idea that if USDT dominance begins to decline, the current breakout could turn out to be a fakeout.\u00a0<\/span><\/p>\n Mags asserts that such a move could potentially ignite another expansion in Bitcoin\u2019s price, possibly <\/span>even leading to a new all-time high before any significant distribution occurs.<\/span><\/p>\n Conversely, Mags outlined a second scenario indicating early signs of a <\/span>bearish structure<\/span><\/a>. If the broader market trend weakens, Bitcoin might experience a temporary bounce, while USDT dominance forms a higher low near its mid-range before trending back upwards.\u00a0<\/span><\/p>\n In this case, BTC would exhibit a slow distribution pattern, marking neither a crash nor a rapid decline, but rather a gradual, choppy downward movement characteristic of initial bearish market behavior.<\/span><\/p>\n The next move in <\/span>USDT dominance<\/span><\/a> is poised to play a crucial role in determining whether the current market represents a mere pause before further price continuation or the onset of an extended distribution phase leading up to a new all-time high.<\/span><\/p>\n Featured image from DALL-E, chart from TradingView.com<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" As 2025 came to a close, Bitcoin (BTC) ended on a negative note, trading more than 30% below its all-time highs and grappling with the formation of a death cross\u2014a technical indicator that traditionally precedes significant price corrections.\u00a0 Currently hovering just above $89,200, Bitcoin recently saw its 10-week and 50-week simple moving averages (SMAs) cross […]<\/p>\n","protected":false},"author":2,"featured_media":415928,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-415927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/415927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=415927"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/415927\/revisions"}],"predecessor-version":[{"id":415929,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/415927\/revisions\/415929"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/415928"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=415927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=415927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=415927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Bitcoin May Face 50%-60% Correction\u00a0<\/span><\/h2>\n
Related Reading<\/span><\/h2>\n<\/p>\n
Two Scenarios For BTC\u2019s Future<\/span><\/h2>\n
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