What’s a ‘Bitcoin cross of death’ and how to perceive it
The cross of death or simply the death cross happens when the spread between the 50-day moving average and the 200-day moving average becomes closer and the 200-day moving average becomes bigger afterwards. This intersection forms a cross on the graphic and the asset experiencing this event usually falls down. Its opposite is the golden cross when the 50-day moving average becomes bigger than the 200-day moving average.
The cross of death or the death cross has already been detected on the price graphics of Bitcoin in 2015 and instead of falling downwards, the cryptocurrency has gained almost plus $300 - a big sum at the time considering that Bitcoin has found itself costing $500 as a result. This is why some cryptocurrency traders advise not to cause panic, although Bloomberg implies that there is nothing good in the phenomenon if it has “death” in the title.
Bitcoin, the world’s largest cryptocurrency, may be set to fall further if trading patterns are any guide https://t.co/xnZvD9qCYF via @crypto pic.twitter.com/9QZLQje3eX
— Bloomberg Technology (@technology) March 16, 2018
Financial analyst from FxPro Alexander Kuptsikevich is also supporting this optimistic point of view. In addition, he says that this cross can actually be just another confirmation of the fall of Bitcoin we have already witnessed during the first quarter of 2018. As other investors suggest, the second quarter might turn out to be better. Their prediction is based on historical data - second quarters are usually good for Bitcoin.
In the world of traditional assets, the price of AT&T stocks fell from $37 to $29 after experiencing the death cross in 2008; the same has been experienced by the Bank of Ireland in 2014.