Bitcoin crashed from its all-time high of $64k and hasn’t been able to recover since then. This made the price of Bitcoin fall below the 200 days moving average. And that has been acting as strong resistance in the upward price movement of Bitcoin. Due to this, the 50 day moving average of Bitcoin has been falling, and today, it has finally fallen below the 200 day MA forming the Bitcoin death cross.
What does Bitcoin death cross mean?
To help you understand this better, I will explain this in layman’s terms. Whenever the price continues to drop before, let’s say, before a bearish market, the biggest indication will be the 50 day MA falling below 200 days MA. This is because, in the last 50 days, the prices have taken a hit. Since the price of Bitcoin has been between 30-40k for over 3 weeks now, the 50 days MA has fallen significantly, and now it’s below 200 days MA. So, this is obviously not a good thing for Bitcoin.
Should you be worried?
I am going to say yes, but not a lot. In the last bull runs, it was seen that the death cross gave many false signals. So, it is not necessarily a bearish market beginning. We could even see a strong rally from here on, and that will be followed by a golden cross where the 50 days MA will cut 200 days MA from the bottom. The strong hands are continuing to accumulate, and there is extreme fear in the market with BTC being strongly oversold.
If I were you with my portfolio down 40% invested in Bitcoin, I would just stop looking at the market. There is nothing much you can do about it. If you can’t afford to take the 40% loss then just hold, I am pretty optimistic that the bull run isn’t over. But even if it is, in 3 years, the next bull run will be even bigger, and the losses will go green again.
What are your thoughts on the Bitcoin death cross? And do you think that the bull run will continue? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Safemoon CEO doesn’t hate Dogecoin.
