Bitcoin Death Cross 2022: What You Need To Know About The Deadly Signal

Pa NewsBTC - 2 zan de sa - Tan Lekti: 2 minit
Mer, 12 janvye 2022 6:29 PM

Bitcoin Death Cross 2022: What You Need To Know About The Deadly Signal

All across crypto, fear is in the air. Not only is the market shaken from the recent downtrend, but there’s an extra layer of doom and gloom due to an impending “death cross” in Bitcoin.

Learn all about the ominous sounding crossover of two commonly watched moving averages, what the signal could mean, and how Bitcoin price has reacted in the past.

Bitcoin price on daily BTCUSD charts is only days away from completing a “death cross.” According to Investopedia, “a death cross is a technical chart pattern indicating the potential for a major sell-off.” It occurs when a short-term moving average (in this case the 50-day MA) crosses below a long-term moving average (the 200-day MA).

The signal tells investors that the asset’s growth has slowed and is showing potential of a bear trend. Long-term price depreciation is possible. However, in Bitcoin, things don’t always behave the way they should.

Related Reading | 2022: The Year The Secular Bitcoin Bull Run Could End

Atravè uit kwa lanmò total nan premye lajan kript la, gout an mwayèn nan yon mwa soti nan kwa a se yon sèlman 25% (h / t Dan atravè TonyTradesBTC) - piti pa estanda kript.

The opposite signal, golden crosses, also don’t always have a positive impact, either. In fact, Bitcoin price is lower now today than it was when the last golden cross triggered.

Kwazman sa yo, yo souvan itilize konfonn mache a pandan faz consolidation. Anvan eklatman ti towo bèf 2020 la, te gen de kwa lanmò ak de kwa an lò. Yon kwa lanmò remakab nan mwa Oktòb 2019 te lakòz yon ponp 42% siyal jou anvan an.

Malgre fòs la, aksyon pri te rejte tounen desann nan nouvo lows, sèlman nan kwa an lò, kwa lanmò, Lè sa a, kwa an lò ankò. Devan kous ti towo bèf 2016-2017 la, te gen tou yon fakeout menm jan an - ki montre nan bwat vèt la.

Related Reading | The Hidden Bitcoin Trend Line That Could Save The Bull Run

Prior to the 2014-2015 bear market, however, there was a death cross, golden cross, back into a death cross fakeout that closely mimics the situation brewing in Bitcoin right now in the red box.

Another such example could result in a renewed bear phase. But the data otherwise shows that the “death cross” is not a reaper you need to fear.

How will #Bitcoin . React to the “death cross”

— NEWSBTC (@newsbtc) January 12, 2022

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Sous orijinal: NewsBTC