{"id":8498,"date":"2021-06-20T15:54:42","date_gmt":"2021-06-20T15:54:42","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bearish-or-bullish-bitcoin-traders-argue-over-death-cross-outcome\/"},"modified":"2021-06-20T15:54:42","modified_gmt":"2021-06-20T15:54:42","slug":"bearish-or-bullish-bitcoin-traders-argue-over-death-cross-outcome","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bearish-or-bullish-bitcoin-traders-argue-over-death-cross-outcome\/","title":{"rendered":"Bearish or Bullish? Bitcoin Traders Argue Over Death Cross Outcome"},"content":{"rendered":"

On Saturday, cryptocurrency analysts and traders have been discussing bitcoin\u2019s recent chart patterns and the infamous death cross pattern has been a topical conversation. A number of traders believe when bitcoin\u2019s short-term moving average (MA) dips below the long-term MA, the crypto asset could be bracing for a major sell-off. Meanwhile, others are sure the death cross technical pattern means the price is due to rebound and possibly double-top to higher values than the previous all-time high.<\/strong><\/p>\n

The Return of the Infamous Death Cross<\/h2>\n

On June 19, a number of Twitter conversations, forum posts, and even headlines discussed the technical pattern called the death cross in regard to bitcoin\u2019s (BTC<\/a>) chart. Bloomberg published an article<\/a> concerning the death cross on Saturday and the publication featured a few statements from billionaire investor Mark Cuban<\/a>. The definition of a death cross stemming from Investopedia notes<\/a> the pattern suggests \u201cthe potential for a major sell-off.\u201d The website\u2019s definition adds:<\/p>\n

The death cross appears on a chart when a stock\u2019s short-term moving average crosses below its long-term moving average. Typically, the most common moving averages used in this pattern are the 50-day and 200-day moving averages.<\/p>\n

However, the death cross doesn\u2019t necessarily mean a bearish market is due. Investopedia details that death cross events led to traditional stock market crashes during the past century including 1929, 1938, 1974, and 2008. Death crosses are not unusual and data from Canterbury Investment Management<\/a> indicates the Dow Jones Industrial Average has experienced 84 death crosses since 1929. The popular economist and trader Alex Kr\u00fcger recently discussed the situation of a death cross in relation to BTC<\/a>\/USD charts.<\/p>\n

\u201cThe Death Cross takes place when the 50 day moving average crosses below the 200 day moving average,\u201d Kr\u00fcger tweeted<\/a>. \u201cThe Death Cross takes place when the 50 day moving average crosses below the 200 day moving average. Journalists love writing about how a death cross could bring forth a bear market. However, one week historical returns following a bitcoin death cross are POSITIVE. Relax,\u201d Kr\u00fcger stressed.<\/p>\n

Picture via Alex Kr\u00fcger on Twitter.<\/p>\n

The popular creator of the bitcoin stock-to-flow model, Plan B, also tweeted about the infamous death cross on Saturday. \u201cStudy this chart to see what happened [the] last two times the death cross happened, Q4 2019 and Q1 2020,\u201d Plan B said<\/a> to his 566,000 followers.<\/p>\n

Picture via Plan B on Twitter.<\/p>\n

However, an individual named Mohit Sorout responded to Plan B\u2019s tweet and noted that there\u2019s been a number of death cross occasions throughout bitcoin\u2019s lifetime.<\/p>\n

\u201cThere have been 6 past death crosses in bitcoin\u2019s lifetime,\u201d Sorout replied<\/a> to Plan B. \u201c4 have resulted in enormous downside. The two that didn\u2019t lead to a downtrend were towards the end of a bear market, not after a full blown bull run. Choose your bias wisely,\u201d he added.<\/p>\n

<\/p>\n

Bitcoin Traders Hope a 2013 Double-Top Pattern Emerges<\/h2>\n

The creator and host of CNBC\u2019s Crypto Trader show Ran Neuner also wrote about the death cross on Saturday too. \u201cBitcoin shorts are being closed,\u201d Neuner said<\/a>. \u201cThis is confirmation that the shorts were speculative and that it wasn\u2019t miners hedging. We said this would happen in anticipation of the \u2018death cross\u2019 that should cross around the 24th June. Expect more FUD. I\u2019m not selling.\u201d<\/p>\n

Picture via Sultan on Twitter.<\/p>\n

A crypto enthusiast called Sultan discussed the death cross situation with his followers as well and said that it may mean the worst is behind us. \u201cDeath cross,\u201d Sultan wrote<\/a>. \u201cIronically, death crosses are often a sign that the worst is already behind us. At the 2019 DC, Bitcoin had already went through a -47% dip before the DC flashed, with a 52% recovery after. And a -64% dip before the 2020 DC, with a quick 150% recovery,\u201d he added. Another person wrote to Plan B and said:<\/p>\n

A real death cross is when both MA\u2019s are facing down. Good luck to anyone trading the current cross on BTC<\/a>.<\/p>\n

No one really knows what will happen even though a number of traders are confident their predictions will play out. Investor and market watcher John Hostetler also talked about the death cross scenario as well on Saturday. \u201cOnly a fool could deny that this Bitcoin DeathCross is more like a bearish cross in red than a bullish one in green,\u201d Hostetler said<\/a>. \u201cBut I do like how the BTC<\/a> price fell this week, as if to say \u2018let\u2019s get it over with, then we can rise\u2019\u201d<\/p>\n

\u201cIn the end, the cross changes little,\u201d Hostetler further stressed<\/a>. \u201cBig question remains: has this halving cycle peaked? 2 weeks ago I would\u2019ve assigned that a 1% possibility, because I hadn\u2019t looked at the now-dismal chart of Bitcoin S2F multiple in a while. Since then I have raised the odds to ~20%. But that still leaves 80%. So I continue with the Bitcoin double top model, drawing hope from the summer of 2013, when $BTC<\/a> came within a breath of a Death Cross: grey arrow on the chart,\u201d he concluded.<\/p>\n

What do you think about the bitcoin death cross chart pattern? Do you expect a bear market or a bull market going forward? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nMarket Updates, 2013, 6 death crosses, Alex Kruger, analyst, bitcoin death cross, bitcoin prices, Bloomberg, death cross, Double Top, Economist, Few Death crosses, Golden Cross, John Hostetler, Mark Cuban, Markets, Mohit Sorout, pattern, Plan B, Prices, ran neuner, S2F, Sultan<\/p>\n","protected":false},"excerpt":{"rendered":"

On Saturday, cryptocurrency analysts and traders have been discussing bitcoin\u2019s recent chart patterns and the infamous death cross pattern has been a topical conversation. A number of traders believe when bitcoin\u2019s short-term moving average (MA) dips below the long-term MA, the crypto asset could be bracing for a major sell-off. Meanwhile, others are sure the…<\/p>\n","protected":false},"author":0,"featured_media":8499,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8498"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8498"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8499"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}