Experienced Analyst Says This Formation Was Also Seen at the Beginning of 2022 in Bitcoin, Predicts What Will Happen Next

Cryptocurrency analyst Colin Talks Crypto commented on the sharp decline in Bitcoin (BTC) in recent days and issued an important warning that has sparked controversy in the market.

According to the analyst, the death cross formation that occurred a few days ago, while it has often signaled a bottom and a strong reaction in the past, did not have the same effect this time. This suggests that Bitcoin may have already abandoned the peak at $126,000.

Colin noted that this structure has only worked similarly once before in history: January 14, 2022, at the beginning of the major bear market that began immediately after the 2021 bull market. The death cross at that time, instead of bringing new highs, heralded a prolonged downtrend. According to the analyst, Bitcoin's response to the last cross a few days ago is quite similar to that period.

Colin Talks Crypto noted that this similarity suggests the peak in the current cycle may have already been reached, but he didn't completely rule out the possibility of a medium-term rally. “I expect a temporary relief rally in the coming months, similar to what's seen in a strong bear market,” he said. “However, this is more likely to be a recovery within a bear trend, not a bull run that will yield a new all-time high.”

For those unfamiliar with the concept of a “death cross,” Colin explained the technical definition: a 50-day moving average crossing below the 200-day moving average. While this pattern often signals a bottom and a rapid recovery after a sharp decline, this behavior has now been disrupted in 2022.

*This is not investment advice.