The saying goes: “Fear is a bad advisor.” But when you get a file news article pass by words Bitcoin (BTC) in a “death crossSo it’s possible that all kinds of doomsday scenarios will run through your head. Are they really as bad as they seem? In this week’s Timo look, take a look at the history of the death crosses on the Bitcoin chart!
What is that?
But the first question; What is this death cross? Technical Analysts Call 50-Day Crossing moving average (MA) Through the 200-day MA Death Cross. So it is about crossing the 200-MA through the 50-MA from above. On the contrary, we talk about a golden cross.
Death cross is an important indicator for many investors. In the past, several major bear markets in traditional markets such as those in 1974 and 2008 were preceded by reference. bitcoin chart We find several crosses of death. There we immediately see that the death cross does not immediately mean that everything is completely unraveled.
Bitcoin death crosses
The first real death cross on the Bitcoin exchange cryptocurrency chart Queen PieceWe have to go back to 2018. After a bizarre multi-year bull run, where the value of bitcoin rose 2,000% in the last year, we see a death cross in March 2018.
This death cross was formed after the value of Bitcoin had already dropped by 50%, which immediately appears to be the so-called late indicator is being. Often you don’t track the signal until after the rollback has already begun. What followed after the Death Cross in 2018 was really a long period of low prices.
Even after the short bull market in 2019, we’re seeing a death cross. This time around, the coronavirus outbreak turned out to be a bitcoin rescue. After the massive Corona accident in March 2020, the path reversed and we got the legendary He runs Which eventually brought us to a prize of $65,000.
The death cross in 2021 was followed by the ascent
Another proof that the signal doesn’t have to be bad news is the death cross in 2021. Instead of a big drop, a new high to the current level followed. absolutely high $69,000.
Moral of the story: Merchants shouldn’t throw in the towel at the death cross. It only serves as one of the many pointers and signals by which an estimate can be made.
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