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

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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.

The "death cross" is nigh | Source: BTCUSD on TradingView.com Does The Bitcoin Death Cross Mean Doom And Gloom For Crypto?

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 varētu beigties

Astoņos nāves krustojumos pirmajā kriptovalūtā vidējais kritums mēneša laikā pēc šķērsošanas ir tikai 25% (h/t Dan, izmantojot TonyTradesBTC) – tas ir niecīgs pēc kriptovalūtas standartiem.

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.

The history of death and golden crosses in emoji | Source: BTCUSD on TradingView.com Data Shows Whether Or Not You Should Fear The Reaper

Šādi krosoveri bieži tiek izmantoti, lai konsolidācijas fāzēs sajauktu tirgu. Pirms 2020. gada vēršu izlaušanās bija divi nāves krusti un divi zelta krusti. Viens ievērojams nāves krustojums 2019. gada oktobrī izraisīja 42% sūkni iepriekšējā dienā.

Neskatoties uz spēku, cenu darbība tika noraidīta līdz jauniem zemākajiem līmeņiem, tikai līdz zelta krustam, nāves krustam, pēc tam atkal zelta krustam. Pirms teiksmainā vēršu skrējiena 2016.–2017. gadā bija arī līdzīgs viltojums — attēlots zaļajā kastē.

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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Piedāvātais attēls no iStockPhoto, diagrammas no TradingView.com

Oriģināls avots: ZiņasBTC