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Bitcoin Facing the Death Cross… Should You Worry About It?

Source: https://bit.ly/3cWAGY1

The sign of the death cross or the cross of death from its designation derived from death is suggestive of what it refers to.

It is one of the most prominent indicators in the financial markets. This indicator has previously predicted four major downturns in the crypto market, as well as the crash of the stock market in 1974 and 2008.

What is the sign of the death cross?

When the bull market ends, the short-term momentum starts to move slowly, the death cross indicator indicates a crossover between the MA-50 and the MA-200.

Long-term moving averages can be able to provide a strong direction, which creates an idea of ​​the underlying demand.

In bullish bull markets, momentum moves higher over time, so in shorter time frames like the 50MA, the market tends to go above the long term average.

Reliability of the Death Cross Indicator in the Crypto Market:

Being that the crypto market is much smaller than the traditional market, the crypto market is not always 100% of the same indicators and rules applied to it.

The death cross indicator often succeeds and highlights what is coming for the market.

But it is not always guaranteed, and sometimes it fails and the market is not affected, as he predicts, which is what happened in 2015 when the indicator appeared on the charts, but the price was not affected by the decline, but rather started in a bull market.

In the above tweet the Death Cross indicator has been tracked in the past years and the reliability it has shown through bearish price action and the days it took.

The death cross indicator is a great indicator that should definitely be taken seriously, and this indicator ends with the appearance of the golden cross, which is its opposite, and is when the MA-50 line crosses above the MA-200 line.

Other than pure technical analysis, many followers are of the opinion that there are several interesting fundamental factors that could push the price of Bitcoin against this indicator such as:

El Salvador’s adoption of bitcoin as an official currency, approval of a Taproot upgrade that will improve bitcoin’s privacy and privacy, the movement of miners to Texas to mine bitcoin with renewable energy, and other positive news that could mitigate the death cross index.

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