Bitcoin Death Cross and Gold Cross Technical Analysis
The Death Cross is a signal worth paying attention to when doing technical analysis. This article will help you understand what a Death Cross is, the types of Crosses to look for, and much more.
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What are Death Crosses and Golden Crosses?
The chart lines tracking moving averages that form both the bullish “golden cross” and the bearish “death cross” trace the simple 50-day and the 200-day moving averages of a stock or cryptocurrency over an extended period of time.
“The death cross,” recorded by Bitcoin in July, indicates that the short-term trend — expressed by the 50-day moving average line — had accelerated downward by crossing below the long-term trend line, the 200-day moving average. This event was supposed to herald a breakdown of the long-term upward trend that began in March 2020. (As it turned out, Bitcoin began a new rally in late July.)
The golden cross is the bullish flipside and happens when the 50-day moving average breaks above the 200-day moving average. Bitcoin was on the cusp of recording a golden cross as recently as Sept. 6, when, according to the crypto Web site CoinDesk, the 200-day moving average was around $46,100 and the 50-day was about to move above that, following a string of closes above $50,000. As it happened, Bitcoin prices retreated the second week in September. It would have been the first time the golden cross has happened on a bitcoin chart in more than a year, suggesting a break-out to a more dramatic rally, according to technical analysts.
(Rob Curran - Money.com)
