A bearish technical pattern known as Bitcoin Death Cross is coming. And this is normal. For those trading in Bitcoin, remember not to fall into the trap of FOMO (Fear-Of-Missing-Out) and continue to buy this period. Do monitor the charts indicators (eg. moving average) and put a sell limit order when this signal happen. This could mean a correction is coming.
What Is Bitcoin Death Cross?
For technical traders, this happens when SMA-50 crosses below SMA-200 trendlines. Based on past history in BTC-USD charts, you need generally the BTC price will fall. You can refer to the chart below in 2018, 2019 and 2020.
Below is what happen on 26 Oct 2019 for BTC where it fell from the high of 9.551 to 6,640.
In the above diagram, I have also highlighted another critical signal called Golden Cross which happened on 23 Apr 2019. This is the opposite of the Death Cross. So this is one of the signals that you should looking out for.
Should You Be Concerned?
Death crosses reflect significant decline in stock or market prices, and have in some cases pointed to further downturns. Death crosses have previously signaled bearish behavior across the broader markets (think: 1929, 1938, 1974, and 2008).
For Bitcoin, this isn’t its first run-in with the death cross signal.
By definition, the death cross is an indicator of what has already happened—it isn’t always an accurate signal for bearish movements still ahead. Periods of decline can also be followed by intense gains, or even a golden cross.
The death cross may be regarded as a reliable indicator for impending low prices, but it’s not a perfect one,
A golden cross or death cross can help all types of investors identify entry and exit signals. In the video below, it shows more details on what golden crosses and death crosses are, and how to use them to find entry and exit signals. This is especially useful for the current situation.
Though this is a strong signal, it is not 100% guarantee. Hence personally as I am also leveraging on my Price Action Manipulation trading knowledge to gain further insights on this movement. Do perform your own due diligence for this wild volatile ride.
Ok, that’s it. Trade safe!
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