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Market

Many transitions … but not seeing many deaths (DEATH CROSS)

June 25, 2021 - Around 3 mins mins to read

The recent Death Cross phenomenon has been mentioned many times along with concerns that the price of BTC will go down. However, in BTC’s price history, the Death Cross line is only the result of math and does not reflect an exact price trend.

Death Cross is the time the 50-day moving average (MA50) crosses below the 200-day moving average (MA200) of BTC. And vice versa, when the MA200 crosses the MA50, it is called the Golden Cross.

Many transitions but not seeing many deaths DEATH CROSS

Like other technical indicators, Cross is an analytical tool and has some lag. With the Death Cross, the previous high end price of the bull market is replaced by a lower price when the markets are falling. At this point in time, the MA50 is using less old price data than the MA200, so it is more affected, so it goes under faster than the MA200, resulting in a death cross.

Death Cross and Golden Cross have happened a lot in the stock market, just like gold, because these are two markets with long histories. Over the years when the Death Cross appeared in the S&P 500, there were times when the market rose, there were times when the price had fallen, but sometimes the price stayed the same.

1624616236 492 Many transitions but not seeing many deaths DEATH CROSS

However, due to the fluctuations in the price of the Death Cross, the S&P 500 fell an average of 12.557%. Because of this, many people in the financial markets are interested in this phenomenon. In the long run, although the death cross phenomenon has appeared many times, the stock market is still on an uptrend.

As for the Bitcoin market, there have been 7 death cross phenomena. However, at these 7 times the price reaction has 3 increases and 4 decreases.

1624616237 55 Many transitions but not seeing many deaths DEATH CROSS

Even though the Golden Cross appears in BTC prices, there are ups and downs as well. So far, at all times of the Golden Cross, BTC has had 2 out of 5 BTC price drops.

1624616237 279 Many transitions but not seeing many deaths DEATH CROSS

Despite the Death Cross, the price of BTC has risen very sharply over the years. Long-term investors are hardly interested in the death cross, as this phenomenon only has a short-term effect on the price of BTC. In the long run, the BTC price is still on an upward trend year after year.

â–º Become part of the support team and the most prestigious stock exchanges with exclusive offers with ThuanCapital

.

Market

Many transitions … but not seeing many deaths (DEATH CROSS)

The recent Death Cross phenomenon has been mentioned many times along with concerns that the price of BTC will go down. However, in BTC’s price history, the Death Cross line is only the result of math and does not reflect an exact price trend.

Death Cross is the time the 50-day moving average (MA50) crosses below the 200-day moving average (MA200) of BTC. And vice versa, when the MA200 crosses the MA50, it is called the Golden Cross.

Many transitions but not seeing many deaths DEATH CROSS

Like other technical indicators, Cross is an analytical tool and has some lag. With the Death Cross, the previous high end price of the bull market is replaced by a lower price when the markets are falling. At this point in time, the MA50 is using less old price data than the MA200, so it is more affected, so it goes under faster than the MA200, resulting in a death cross.

Death Cross and Golden Cross have happened a lot in the stock market, just like gold, because these are two markets with long histories. Over the years when the Death Cross appeared in the S&P 500, there were times when the market rose, there were times when the price had fallen, but sometimes the price stayed the same.

1624616236 492 Many transitions but not seeing many deaths DEATH CROSS

However, due to the fluctuations in the price of the Death Cross, the S&P 500 fell an average of 12.557%. Because of this, many people in the financial markets are interested in this phenomenon. In the long run, although the death cross phenomenon has appeared many times, the stock market is still on an uptrend.

As for the Bitcoin market, there have been 7 death cross phenomena. However, at these 7 times the price reaction has 3 increases and 4 decreases.

1624616237 55 Many transitions but not seeing many deaths DEATH CROSS

Even though the Golden Cross appears in BTC prices, there are ups and downs as well. So far, at all times of the Golden Cross, BTC has had 2 out of 5 BTC price drops.

1624616237 279 Many transitions but not seeing many deaths DEATH CROSS

Despite the Death Cross, the price of BTC has risen very sharply over the years. Long-term investors are hardly interested in the death cross, as this phenomenon only has a short-term effect on the price of BTC. In the long run, the BTC price is still on an upward trend year after year.

â–º Become part of the support team and the most prestigious stock exchanges with exclusive offers with ThuanCapital

.

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