Bitcoin’s recent crash was precipitated by an apparent crypto-death-cross. A death cross is a pattern that occurs on a chart in which two moving averages (which are used to identify trends) are crossed in the same direction. As you can see in the chart below, the Bitcoin price broke the $7,200 level on Feb. 25, but the MACD (a barometer of price momentum) wasn’t signaling that a crash was imminent.
On July 3, 2018, the price of Bitcoin shot up to $4,407.20, marking the first time the cryptocurrency has ever reached the $4,000 price level. This was just a minor blip on the radar, as since then, the price of Bitcoin has fallen by almost 50 percent, to a low of $3,905.72 on October 8, 2018.
The Bitcoin price continues to grind lower, but this time the price is at an important point in the cycle. After consolidating for the past few weeks, the Bitcoin price is now in a very “funky” technical pattern. Traders call this a “death cross”, and it’s a warning that the price has the potential to become unprofitable in the near term.. Read more about btc death cross 2021 and let us know what you think.Crypto Youtuber Lark Davis notes that Bitcoin is headed for a death cross if something doesn’t change soon. Within the current price action, a bearish technical pattern will form in mid-June. If something doesn’t change soon for #bitcoin, we could be facing a death cross by mid-June!!!! pic.twitter.com/K3pkvNrnPx – Lark Davis (@TheCryptoLark) 4. June 2021 The warning came at a time when everything that can go wrong for bitcoin is going wrong. Elon Musk posted a heartbreaking tweet this morning that coincided with a 3% drop in the share price within an hour. Bitcoin continues to fall this morning. After bitcoin’s 54% plunge just under a month ago, there has been a lot of talk about the return of cryptowinter. Does the presence of a death cross on the charts mean the end of the bull market? Source: @TheCryptoLark on Twitter.com
bitcoin bulls to activate
The bitcoin price was rejected at $39.2k. This level has become a strong resistance area, as there have been six rejections here in the last two weeks. While death crosses are often seen as the start of a long, sustained bear market, analyst Rekt Capital believes this is not always the case. Bullish macro sentiment continues, but a downward trend will likely be confirmed when the death cross occurs, they wrote on Twitter. Still, Rekt Capital predicts that bitcoin could hit the $18,000 mark when the death cross comes. This calculation is based on the symmetry of the percentage of losses in accidents before and after the death of the cross. 15. Since #BTC has already collapsed by -54%, and if this symmetry continues, BTC could collapse again by -54% if a death cross occurs today. That would lead to ~$18,000BTC pic.twitter.com/01Dc41PtK1 – Rekt Capital (@rektcapital) 1. June 2021 The stock has already plunged 54% due to Elon Musk’s energy scam and is expected to fall another 54% when the death cross happens. Since #BTC has already collapsed by -54%, and if this symmetry continues, BTC could collapse again by -54% if a death cross occurs today. This would fetch ~$18,000BTC, they said.
How reliable is the death cross as an indicator of a strong pullback?
The Death Cross is a chart pattern that indicates the possibility of a large sale. This occurs when the short-term moving average of an asset falls below its long-term moving average. Analysts typically use 50 and 200 day moving averages to represent these time frames. They have proven to be a reliable predictor of some of the worst bear markets in the past, such as. B. 1929, 1938, 1974 and 2008. But, as Rekt Capital said, they don’t always live up to their name. The last bitcoin death cross occurred in late March 2020, shortly after Corona’s collapse. Death Cross resulted in a relatively slight drop from $6.7 million to $5.9 million (-12%) in three days. The golden cross, when the 50-day MA crosses the 200-day MA, occurred about six weeks later. Source: BTC/USD on TradingView. However, there is no guarantee that a similar result will be achieved if we get a death cross in the next week.
Gaining an advantage in the crypto asset market
As a paying member of Edge, you have access to a deeper understanding of cryptocurrencies and context in each article. Chain Analysis Price snapshots More context Join now for $19/month View all benefits
Do you like what you see? Sign up for updates.
If you haven’t heard this term before, it’s a technical term (used in finance and economics) that refers to a chart pattern that occurs when the shorter term moving average lines up with the longer term moving average lines.It’s called a ‘death cross’ because it’s often a signal that a bear market is about to be more significant. The technical term is called a ‘bear trap’, which is a stock that has been in a bear market for a long time but has not yet formed a real bear market.. Read more about btcnews and let us know what you think.
btc death cross 2021bitcoin death cross chartbitcoin pricebtcnewsbitcoin movebitcoin $52,000,People also search for,Privacy settings,How Search works,btc death cross 2021,bitcoin death cross chart,bitcoin price,btcnews,bitcoin move,bitcoin $52,000,bitcoin charts 2021,bitcoin $52k