Analysts Discover 'Death Cross' on Bitcoin Chart
The on-chain MVRV indicator has formed a “death cross,” which may indicate a weakening of the first cryptocurrency’s upward momentum, according to CryptoQuant analyst Yonsei_dent.
According to him, there was a clear crossover between the 30-day and 365-day moving averages of the metric. The last time the indicator showed such a bearish move was at the peak of the 2021 cycle. This was followed by a 77% drop – from $69,000 to $15,500 in 2022.
Analyst Ali Martinez agreed that the MVRV “death cross” signals a shift in macro momentum from positive to negative.
A recent death cross in the Bitcoin $BTC MVRV Momentum indicator signals a macro momentum reversal from positive to negative. pic.twitter.com/m0FCqOMD3v
— Ali (@ali_charts) August 27, 2025
Not all indicators point to a fall
Despite the bearish signal, other on-chain indicators suggest that Bitcoin's rally is not yet overheated.
For example, the MVRV Z-Score indicator remains well below levels historically associated with market tops. This metric measures the difference between an asset's market value and its realized value.
“When it's high (red zone), people are sitting on huge profits and tend to sell. When it's low (green zone), users are in the red and smart money is buying,” explained analyst Stockmoney Lizards.
#Bitcoin MVRV Z-Score — in my opinion the most important on-chain metric — tells us the true story of where we are in the BTC cycle.
MVRV shows the difference between Bitcoin's market cap and what people actually paid for their coins (realized cap). The Z-Score normalizes… pic.twitter.com/vpntAXyetY
— Stockmoney Lizards (@StockmoneyL) August 26, 2025
Historically, macro market peaks have coincided with MVRV Z-Score values in the range of 7 to 9. The indicator is currently at around 2.
“We are not even close to the danger zone yet. People do not have such huge unrealized profits as at previous peaks. This means that we have room for growth,” the expert added.
40% correction and growth to $500,000
SkyBridge Capital founder Anthony Scaramucci predicted a possible 40% drop in the price of Bitcoin before reaching $500,000. In his opinion, such volatility is an integral part of the cryptocurrency market.
Despite the correction warning, Scaramucci remains optimistic. He expects the first cryptocurrency to reach half a million dollars within the next five to six years.
He urged investors to hold on to their assets and not make the same mistakes as he did in the past.
“If you have a great asset, and I think Bitcoin is a great asset, hold it. I sold Apple, I sold Amazon, I sold Microsoft, I sold Nvidia. […] The mistakes I've made in my career are selling great assets too early. Learn from my 37 years on Wall Street, learn from my mistakes,” Scaramucci said.
Bitcoin whale continues to convert
One of the early investors in Bitcoin sold 2,000 BTC and bought 48,942 ETH with the proceeds. The amount of transactions made on the spot market amounted to $215 million. This was noted by analysts at Lookonchain.
This Bitcoin OG has sold another 2,000 $BTC($215M) and bought 48,942 $ETH ($215M) spot over the past 4 hours.
In total, he has bought 886,371 $ETH($4.07B).https://t.co/qtQdgPt2CQ pic.twitter.com/ymvyHyirFo
— Lookonchain (@lookonchain) September 1, 2025
Taking into account the latest transaction, the investor bought 886,371 ETH worth a total of $4.07 billion.
Demand for Ethereum remains high despite the price correction. The situation was noted by an analyst under the nickname crypto sunmoon. He noted that bitcoin reserves on the Binance exchange remain stable.
ETH Maintains Strong Interest Despite Correction
“Divergence suggests stronger demand for Ethereum compared to Bitcoin, indicating that market participants are actively accumulating ETH even during the current price consolidation.” – By @t0_god
Link ⤵️https://t.co/JqFHkSeEAO pic.twitter.com/rcQ1jVcIum
— CryptoQuant.com (@cryptoquant_com) September 1, 2025
At the same time, Ethereum reserves are showing a steady downward trend.
According to the expert, the divergence indicates a stronger interest in Ethereum compared to the first cryptocurrency. Market participants are actively accumulating ETH during the period of price consolidation.
Recall that in August, analysts at 10x Research said that the likelihood of digital gold rising to $200,000 was “extremely low.”
Later, IG Market analyst Tony Sycamore pointed out the “dual nature” of the first cryptocurrency.
Source: cryptonews.net
