Bitcoin Death Cross Looming as Technical Indicators Flash Warning Signs

Bitcoin's technical indicators are flashing warning signs as it nears a bearish 'death cross.' This occurs when the 20-week EMA crosses below the 200-week EMA, a pattern that preceded a significant price drop in 2022. According to recent data, Bitcoin's 20-week EMA is close to crossing below its 200-week EMA, which could lead to a 29% price drop and a fall below $45,000.

Other factors contributing to the bearish outlook include a major Coldcard wallet hack that has undermined investor confidence. The hack resulted in the theft of over $114 million, causing prices to drop modestly, but only by about 1.5%. The strengthening yen is also impacting carry trades and adding pressure on Bitcoin's price.

Rising expectations of Federal Reserve rate hikes are another factor contributing to the bearish outlook. This has led to a decline in market maturity, with Bitcoin futures yields falling below U.S. Treasuries' average yield. Analysts expect the 10-year Treasury yield to surpass 5%, signaling potential Fed action and further pressuring digital assets.