Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: seje on June 18, 2021, 10:40:56 AM
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Here’s how Bitcoin’s impending death cross could be a contrarian buy signal
Bitcoin’s (BTC) succession of sharp corrections from its all-time high at $64,900 has turned investor sentiment negative, at least for the short-term. While some analysts believe the bottom may have been hit, others are warning of a further fall due to the “Death Cross” pattern that, at the time of writing, is on the verge of completion.
For new traders, the name death cross itself brings a lot of negativity and a feeling of impending doom. This sentiment can trigger selling panics, especially if the market has already been going through a bear phase prior to the pattern being spotted.
However, is a death cross something to be feared or is it a crystal ball that gives traders insight on when a plunge is imminent?
Let’s find out with the help of a few examples.
What is a death cross and how accurate is it?
The death cross forms when a faster period moving average, usually the 50-day simple moving average, crosses below the longer-term moving average, generally the 200-day SMA.
https://cointelegraph.com/news/here-s-how-bitcoin-s-impending-death-cross-could-be-a-contrarian-buy-signal