Shaf
Verified member
There are many tools and indicators that traders use to predict what may happen to a coin or token based on past information, and a death Cross is a very prominent one.
The name itself implies doom, and events after it often leave traders in a loss. A death cross occurs when the 50 simple moving average (SMA) crosses below the 200 simple moving average on any time frame, but it's mainly used for the daily timeframe. This occurs after a period of long downtrend and in this bear market, Bitcoin has already done that a few months back.
Some traders don't consider the death cross as an important indicator because it's a lagging indicator and therefore unreliable. However, a lot of traders do exit the market when it occurs and it can lead to even more downtrend.
A death cross seems imminent on the Bitcoin weekly chart, which has never happened, leaving investors worried about what could be the potential implications if price goes that low. Perhaps, it could signal the bottom like it happened after the 2020 death cross on the daily chart.
The name itself implies doom, and events after it often leave traders in a loss. A death cross occurs when the 50 simple moving average (SMA) crosses below the 200 simple moving average on any time frame, but it's mainly used for the daily timeframe. This occurs after a period of long downtrend and in this bear market, Bitcoin has already done that a few months back.
Some traders don't consider the death cross as an important indicator because it's a lagging indicator and therefore unreliable. However, a lot of traders do exit the market when it occurs and it can lead to even more downtrend.
A death cross seems imminent on the Bitcoin weekly chart, which has never happened, leaving investors worried about what could be the potential implications if price goes that low. Perhaps, it could signal the bottom like it happened after the 2020 death cross on the daily chart.
