Bitcoin (BTC) Price Drops to $83,450 as S&P 500 Index Nears Death Cross

Cryptocurrency prices retreated on Thursday, as investors panicked after Donald Trump's tariffs. Bitcoin (BTC) price dropped to $83,450, while Ethereum (ETH)

Cryptocurrency prices are expected to fall further in the coming days as traders are now keenly watching the S&P 500 index which is about to form a ‘death cross’.

American stock market had a rocky performance this Thursday morning as it continues to crumble following Donald Trump’s tariffs. As a result, the Polymarket odds of a recession hit a record high of 50%.

S&P 500 Index Nears A Death Cross

The blue-chip S&P 500 index futures sank by 200 points as it continues to enter correction territory. The index is now down by over 11% from its highest point this year.

The Dow Jones futures dropped by 1,200 points while the Nasdaq 100 futures slid by over 800 points. The S&P 500 index may drop further as it is about to form a death cross.

This pattern occurs when the 50-day and 200-day moving averages cross each other, suggesting further downside. In this case, the spread between the two averages has narrowed and they could flip each other soon.

The death cross has already occurred when using the Weighted Moving Average. According to the chart, the 50-day WMA has already crossed below the 200-day WMA.

More technicals suggest that the index may also drop further as it moved below the key support at $5,527, invalidating the double-bottom pattern that has been forming. If this happens, the index may slip to $5,120, the lowest swing on August 5, and down by 7.40% from the current level.

This would also invalidate the triple-bottom pattern that is currently forming.

The S&P 500 index is a highly popular asset in the U.S. For the most part, its performance has an impact on the cryptocurrency prices like Bitcoin and Ethereum. As such, there is a chance that its crash may trigger more bearish cryptocurrency price predictions.

Bitcoin Price Technical Analysis

As the biggest coin in the industry, Bitcoin has a major impact on cryptocurrency prices. It is the engine that drives the crypto market.

On the daily chart, the BTC price has remained below the crucial support at $89,145, its lowest swing on January 14, and the neckline of the double-top pattern. The coin has also formed and retested the rising wedge pattern.

Moreover, the 200 and 50-day weighted moving averages have formed a death cross pattern, meaning that the coin will have a bearish breakdown, potentially to $76,890, its lowest level this year. A move above the resistance at $89,145 will invalidate the bearish view.

ETH Price Technical Analysis

Another coin that will impact cryptocurrency price prediction is Ethereum. On the daily chart, the ETH coin has moved below the key point at $2,125, the neckline of the triple-top pattern at $4,000. It has also retested that resistance, creating a break and retest pattern that leads to more downside.

Therefore, the most likely ETH price forecast is where it keeps falling and retests the support at $1,500. This view will be canceled if the coin rises above $2,126.

Summary Of The Cryptocurrency Price Prediction

There are increasing odds that the cryptocurrency market will continue to fall in the coming days as investors panic and sell their coins. Afterwards, they will rebound as the Federal Reserve intervenes by cutting rates.