Bitcoin Death Cross: What Does It Mean?
Will the price of Bitcoin definitely fall or only preparing its investors for a golden cross?
In simple words, a death cross is a technical indicator that happens when a stock’s moving average (indicator for short-term price fluctuations) falls below its long-term moving average. It’s a reliable indicator for investors since it predicts a behavior for the market – as a whole and for individual stocks.
The death cross is a bear sign that a downtrend will likely remain down for many reasons, a negative outlook that the value of an asset may decrease. On the other hand, when a short-term moving average crosses below the long-term indicator, it’s a signal that the stock is selling and getting value.
It applies to Bitcoin, of course.
Since the cryptocurrency downtrend in late 2018, the bears and bulls are looking to positive indicators for BTC. However, is it really a moment to invest or a… death cross?
Will the death cross become a golden cross?
Bitcoin’s last death cross predictions occurred in December 2014, when the cryptocurrency was worth $168. According to powerful market names life John McAfee, Mike Novogratz, and Tom Lee, what is looking like a death cross may likely become a golden cross – which indicates a bull run on the horizon instead of a bear trap.
According to Tom Lee and Sam Doctor, both from Fundstrat Global Strategy, Bitcoin mining is the number one key for a bull run and a possible golden cross and price-up. “We believe the current path of hash power growth supports a BTC price of about $36,000 by the 2019 year end, with a $20,000 to $64,000 range”, they said to Bloomberg.
Also, as pointed out by analysts, the Bitcoin ecosystem reinforces the theory that the prices candles for BTC are in the same pattern as it were in 2015, when the cryptocurrency reached $20,000 – in other words, a golden cross!
Is mass hysteria useless?
2018 was a bear year that made the most investors and crypto-miners validate their worst fears: the prices downtrend. Some point out that Bitcoin is near a death cross and the internet’s mass hysteria makes smaller investors jump off the bandwagon.
As bad as it sounds, doomsayers can’t relax and continue to mine for the cryptocurrency – because the price of Bitcoin is set to tank up. Of course, the market’s sentiments influence the coin’s performance, but history is the most valuable indicator for it (and the past agrees that a downtrend is usually followed by a bull run).
So put your seatbelts on and get ready to rally – because Bitcoin probably will.
What are your thoughts? Is Bitcoin closer to a death cross or to a bull run? Let us know at BitClub Network’s official page on Facebook!