Monday, October 2, 2023

Bitcoin is reaching the crossroads and the market is looking down

Bitcoin is on the verge of a new death cycle today, an event that almost always results in a price drop and triggers a period of low prices.

The half-baked thing about this situation is that it opens up the opportunity to take advantage of the bid prices and then wait for the upcycle. In fact, BTC is increasingly expected to drop to 20,000.

The glass half empty means that whoever bought for example at 30,000 will either hold out until the price recovers or sell at a loss.

The death cross or death cross occurs when the average Bitcoin price over the last 50 days (MM50) is cheaper than the average price over the last 200 days (MM200).

On the price chart, it is called a moving average index, a line that marks the average value of an asset, in this case Bitcoin, as a reference.

Thus, the 50-day moving average is the sum of the daily BTC prices for the last 50 days divided by 50, which gives an average value. The same procedure applies to the other moving averages, in this case the 200-day average, which is the other one.

When the MM50 line crosses the MM200 line down on the chart, it draws a cross called a death cross because it warns of a possible bear market.

When the opposite occurs, namely that the MM50 crosses and places above the MM200, it is called a golden cross and warns of a possible upward trend in the market.

The last death cross or death cross that BTC faced occurred on January 13, 2022 and was nothing more and nothing less than the beginning of the last crypto winter, a one-year period in which prices fell to the bottom and BTC the US hit $15,000 per unit, plunging the entire crypto market into a horrific purge, including two crypto crashes.

Now it must be said that while Bitcoin is starting its death cross today, the truth is that the downtrend started two months ago, on July 14th, when it last traded above 31,000.

The crossroads of death, marked with the arrow of heaven.

That is, the death cross reflects something that is already happening in the price, but it also confirms that the stagnant or falling price will continue for a long time unless there is an abrupt trend reversal.Some death exceedances have been mild and brief, not all of them need to trigger a year-long crypto winter like last time.

But overall, the event confirms that we are in a bearish phase and that the expectation of a return to a new uptrend would, in principle, not materialize immediately.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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