The death cross is a term used to describe a black-cross pattern in a daily chart of a currency. It’s not a true death cross because, in fact, Bitcoin has never, ever died. But it can look a lot like one if it’s taken out of context. What the media generally fail to do when discussing the death cross is explain that a death cross is not a chart pattern that signifies an imminent demise of the Bitcoin price. And, this goes without saying: there is no impending death of Bitcoin.

The chart above is from the ICOAlerts Blogsite, with the following comment by the author: “We have seen a lot of death crosses in the cryptocurrency space lately. But this one is particularly interesting. And it’s far from the first. I’m talking about the death cross in the short and medium term technical charts. Now, don’t get scared, but this is a real indicator of market bias, with potentially a huge impact on the crypto markets.”

The death cross just happened today, and the media is ready to push the false narrative about the future of the bitcoin market regardless of the historical data. We need to look at these events from a broader perspective and really understand how these indicators work in different market cycles. In this article, you will learn everything you need to know about the cross of death and its implications for the future. Death Cross on Bitcoin Chart Just happened! Don’t fall prey to the media- you might get rekt When the 50-day moving average is above the 200-day moving average, we see an X-shaped chart pattern called the death cross. Historically, this chart pattern has proven reliable many times over the past century, including during the 2008 stock market crash, but it is essential to remember that this indicator only applies to bear markets. It would be unreasonable to look only at a death cross to assess an off-market trend. The media paints a positive or negative picture of the market, not knowing that these are just lagging indicators given the current economic climate of the cryptocurrency market. The upper time frames of these simple moving averages are very skewed and therefore can give delayed signals, which can cost a significant amount of money. To understand this, let’s take an example: Death Cross on Bitcoin Chart Just happened! Don’t fall prey to the media- you might get rekt The above graph is from April 2019 and we can see that there are two main models: the death cross and the golden cross. The dead cross in this chart simply shows us that it marked a short-term low after which the price rose 45%. In the case of the gold cross, we saw an 80% increase from the lower bound. The lagging nature of the AM was confirmed when it showed a strong upward continuation from this point, similar to October 2015. Even when we look at the different sectors, we see that the average returns are higher in the short and long term. The FactSet study found that death crosses generated more positive returns and outperformed gold crosses in the bull market. Throughout the bullish cycle, the death cross has only signaled new buying opportunities at a low price, so it has never signaled the selling or shorting of a stock. Death Cross on Bitcoin Chart Just happened! Don’t fall prey to the media- you might get rekt The biggest limitation of the death cross is that it cannot predict the approach of a prolonged bear market. In previous cycles, we have seen the price of bitcoin rise by over 50% in the weeks following the appearance of the death cross. The same goes for Facebook shares. We had two such transitions in 2018, with the first one proving to be false as the stock posted significant gains later in the year. When an asset undergoes a minor correction and then a death cross occurs, this likely indicates a new buying opportunity. In summary, a death cross in a bull market only indicates markdowns for the investor, but does not dictate long-term market movement. So to put yourself in the best position to avoid significant losses, you need to combine other indicators to determine how the assets will perform. Death Cross on Bitcoin Chart Just happened! Don’t fall prey to the media- you might get rekt Kartikeya Gutta, born and raised in India, is a cryptocurrency journalist and freelance writer for the website itsBlockchain. It covers various aspects of the industry through in-depth analysis and research. His passion for blockchain and the crypto-ecosystem is largely because he believes it can truly change the world and help millions of people.

You have logged in successfully!

Sign up to be notified of the latest posts.

death cross meaningethereum death crossbitcoin moving average chartbitcoin death cross historybtc death cross tradingviewdeath cross bitcoin chart,People also search for,Privacy settings,How Search works,death cross meaning,bitcoin death cross may 2021,ethereum death cross,bitcoin doubters,bitcoin moving average chart,bitcoin golden cross 2021,btc news,bitcoin death cross history