What The Bitcoin Death Cross Means For The Cryptocurrency

A Bitcoin death cross pattern means crypto is in for a rough few months, possibly even more of a reversal than anyone thought.

Bitcoin (BTC) lost half its value since reaching an all-time high of $63,000 in January 2021. Cryptocurrency die-hards will tell you they’ve been here before. If you’ve watched BTC over the last six months, it might seem like just another day.

But the Bitcoin death cross could be different.

In the last year, BTC has surfed a wave of Elon Musk tweets, Robinhood speculation, and even downright gambling – all short-term factors pushing the price higher. But, as Chief Investment Officer of Passport Capital John Burbank says, “Price is a liar.”

Really, there’s a difference between price and value. Despite the latest Bitcoin chatter, it’s been quietly adopted by institutions around the world. And that’s the only thing worth your attention.

So, then why would the Bitcoin death cross concern you?

Well, if you know the fundamentals of an investment, technical indicators like this help give you an idea of how long it will take to be realized by the public.

In other words, if Bitcoin is destined for failure, a death cross can mean failure is imminent.

If it’s destined to be a universally accepted form of exchange and store of value, the death cross can tell you it’s taking longer than expected.

Let’s first talk about what a death cross is. Then, we will get into what it means for the future of Bitcoin.

What Is the Bitcoin Death Cross?

A death cross pattern is when the 50-day moving average of an investment falls below the 200-day moving average. Basically, it’s the average price of the investment each day, based on the averages of the previous 50 or 200 days.

When the moving average for the short term (50-days) sinks below the value of the long term (200 days), it indicates that a dip in price could be more than just a blip on the radar, and the price is trending lower.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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Bitcoin Bandit 2 months ago Member's comment

It's up over 5k in 24 hours.