Bitcoin's recent rally to $86K has brought renewed interest among traders, but the recently confirmed death cross—a situation where the 50-day moving average dips below the 200-day average—signals potential caution. Historically, such patterns have preceded prolonged bearish trends. Currently, Bitcoin is facing macroeconomic uncertainties, which include rising volatility and investor fears of a tariff war. Notably, previous death crosses during major bear markets resulted in significant drawdowns, while some earlier crosses led to minor declines or local market bottoms. Analysts are divided; while some suggest this could signify long-term bearish conditions—potentially lasting up to a year—others believe it might present buying opportunities. Despite the ominous indicator, data suggests that Bitcoin prices tend to stabilize or increase over the following months. Moreover, broader market conditions impact Bitcoin, as other major stock indices are also showing signs of distress. As the situation unfolds, traders must weigh both historical patterns and current market signals cautiously.

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