The recent death cross is pointless and Bitcoin could soon make a gold cross

Bitcoin made a dreaded death cross on June 19, an event that came earlier than expected. But the result that everyone expected was not realized. In fact, this had no significant effect compared to the previous Death Crosses. However, signs of the Golden Cross are emerging, which historically have often led to a Bitcoin rally.

Death cross

This event terrified the entire crypto community as the Death Cross (DC) has often resulted in major falls in the past.

The graphic below shows us how BTC experienced its first DC in 2014. At that point, the benchmark cryptocurrency was down 71.53%. At the end of the following year, Bitcoin saw its first Golden Cross (GC), which helped it get into a bull run. Likewise, the 2018 Death Cross caused Bitcoin to fall 65.11%, and almost a year later it just made a Gold Cross and entered another bull run.

BTC / USD daily chart | Source: TradingView

BTC / USD daily chart | Source: TradingView

However, from October 2019 to June 2020, the standard cryptocurrency generated a number of DCs and GCs. These repetitive events have not had as much of an impact on the price of Bitcoin as the previous ones, with the exception of the decline caused by Covid-19 in March 2020. These occurrences are known as false transitions or meaningless trending transitions. These phenomena occur in a very short time frame, which is unusual for such an important event.

The time difference between DCs and GCs is only 60 and 69 days. Hence, their impact is negligible, which is why they are not considered to be as problematic as the majority of DCs and GCs.

BTC / USD daily chart | Source: TradingView

Golden cross

The last death cross was created on June 19, an event that happened earlier than expected. Historically, DC is created around 107 to 149 days after the first drop. The first drop in this case occurred in May, when Bitcoin fell 53.78%. This means that the planned time frame for DC is around the end of July to the beginning of September, but the Death Cross will take place in less than 60 days.

BTC / USD daily chart | Source: TradingView

Because of this, the current DC appears to be a dummy DC or a meaningless crossover network. Accordingly, the market will soon have a golden cross. Although it is a fake GC, the event will drive Bitcoin price up and potentially bring it back to pre-crash levels. Based on the false GC’s historical timeframe, the next one will take place between 60 and 69 days from June 19th. This represents the expected time around late August to early September. The time frame is pseudo-peak as the initial DC occurs.

BTC / USD daily chart | Source: TradingView

However, Bitcoin must keep its price movement above $ 29,000 for GC to take place as this is a critical level of support. As long as the benchmark cryptocurrency trades above this level, the most recent Death Cross will be invalid and the next Golden Cross will take place.

Nothing

According to Ambcrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page