Bitcoin Death Cross Alert: Will BTC Crash to $40K Before Recovery Starts?

Bitcoin price has slipped below the $60,000 mark while Ethereum trades under $1,600. This continues the current bear market phase and raises fresh worries for investors.

Analyst Spots Repeating Pattern on Weekly Chart

A well-known market watcher named Doctor Profit shared a new weekly update. He points out a signal that few others have noticed so far. The setup matches the one seen before the last big drop in 2022.

In that year Bitcoin first lost its weekly MA200 line. Soon after, a formed when the shorter moving average crossed below the longer one on the weekly chart. Two months later a sharp capitulation candle hit near $15,000 to $16,000. Bitcoin then fell another 30 percent and that low marked the true end of the bear market.

Same Structure Appears Again in 2024

Doctor Profit notes three clear similarities right now. First, Bitcoin has already lost the weekly MA200 support. Second, the same white line crossing below the blue line is forming on the weekly chart. Third, if history repeats, another 30 percent drop could follow the .

He warns that many traders make the mistake of buying at the MA200 thinking it is strong support. This often traps buyers when the line fails to hold.

Expected Capitulation and Bottom Target

The analyst has been calling for a major capitulation event for weeks. He believes this final shakeout will push Bitcoin down to around the $40,000 area. The low could arrive as early as the first week of October 2024. After that bottom forms, a slow recovery phase would begin and set the stage for the next accumulation cycle.

What Traders Should Watch Next

Keep an eye on the weekly chart for the actual confirmation. Watch how price reacts once it tests the $40,000 zone. A strong bounce from that level would support the idea that the bear market has ended. Any further break lower would mean the capitulation is still unfolding.

Market cycles often repeat the same structure. The current signals line up closely with 2022, so caution remains the smart approach until the low is clearly in place.