Bitcoin Key Moving Averages Indicate An Imminent Drop To $38,000
The post Bitcoin Key Moving Averages Indicate An Imminent Drop To $38,000 appeared on BitcoinEthereumNews.com.
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—a technical indicator that traditionally precedes significant price corrections. Currently hovering just above $89,200, Bitcoin recently saw its 10-week and 50-week simple moving averages (SMAs) cross paths on December 8, a development highlighted by market analyst Ali Martinez on social media site X (previously Twitter). Bitcoin May Face 50%-60% Correction Martinez emphasized 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. As seen in the cryptocurrency’s 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. With the recent death cross-forming, Martinez suggests that if history is any guide, Bitcoin could face a correction between 50% and 60%, which would place its price anywhere between $50,000 and $38,000. Adding another layer of complexity to the analysis, market expert Mags has outlined two potential scenarios for Bitcoin’s near future. Two Scenarios For BTC’s Future Following Bitcoin’s downturn since its October highs above $126,000, it has been trading around the $85,000 mark for several weeks. Coinciding with this, Tether’s USDT dominance has broken out of its previous range, currently maintaining levels above the breakout zone. Since Bitcoin and USDT dominance exhibit an inverse correlation, Mags has identified two main scenarios 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. Mags asserts that such a move…
Filed under: News - @ January 3, 2026 3:08 am