Bitcoin Bloodbath: Price Falls Below $97,000 — Is the Death Cross Signaling More Downside?

The Bitcoin price is plunging! The levels dropped below the psychological barrier at $100,000 while altcoins display some strength. After marking daily close below $100K for the first time in 5 months, the buyers were expected to step in. But the indecisiveness among them has triggered more bearish action, driving the levels below $97,000. Now, the question arises whether the BTC price has entered a bear market with the Death Cross approaching or the bulls will regain control? 

Current Price Action

Ever since the Bitcoin bulls were locked at the ATH close to $126,000, they appear to have lost most of their strength. Their inability to defend the interim support validates the bearish claim and raises concerns over the next price action. After printing consecutive lower highs and lows, the price marked an intraday low at $96,712. The price has rebounded to some extent above $97,000, while the fear of a pullback persists. 

The trading volume escalated from around $85 billion to above $106 billion as the levels slid below $100K. On the other hand, the open interest continues to plunge, reaching levels close to $66 billion. In general, Bitcoin is showing unusual weakness in Q4, which is usually bullish in the past few years. It is underperforming gold, the S&P 500, and the Nasdaq. The major reason behind the sell-off could be whale exodus, year-end tax moves and rotation into better alternatives. 

BTC Price Analysis—Bitcoin Death Cross in Play!

Bitcoin price has been forming consecutive higher highs and lows, displaying the inability of the bulls to revive a strong upswing. The token failed to defend the support initially at $115,000, later at $106,800, and is now on the verge of losing $100,000. Another bearish daily close cloud further raises the possibility of a bearish weekly close, which could strengthen the bearish case for the BTC price rally. 

Bitcoin is testing a critical confluence of support as the price dips toward the long-term ascending trendline and the $97K–$99K zone. A clean daily close below this level could open the way toward the deeper demand area at $92K–$94K. However, repeated rebounds from this trendline across 2024–2025 suggest buyers may still defend it. 

OBV shows weakening volume, signalling reduced bullish conviction, and on the other hand, the 50/200-day MA is heading for a Death Cross. If BTC holds above the trendline, a recovery toward $105K remains possible; otherwise, further downside looks more likely, dragging the levels below $92,000. 

Final Thoughts

Bitcoin’s drop below $97,000 and the looming Death Cross signal a critical juncture for the market. While previous bearish crossovers were absorbed, current support levels are under greater pressure, and the declining OBV suggests continued selling momentum. Traders should closely monitor the $93,000–$95,000 support zone and watch for volume confirmation before taking new positions. Although this is not necessarily the start of a bear market, the coming days will be decisive in determining whether BTC stabilizes or faces further downside.

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