Bitcoin News: “History repeats itself, first as tragedy, then as comedy,” they say. Bitcoin has overcome several death cross stages in the past, but how will it unleash its potential this time? Will it be as dire as it always has been, or will the market witness an unexpected, out-of-the-books move?
Historically, Bitcoin’s moves into dangerous territory have occurred soon after its price has recorded significant downsides. As a matter of fact, Bitcoin price has been on a slippery slope for almost a month and as expected, it is on the verge of a potential death knell.
Amsterdam-based technical analyst Michaël van de Poppe commented on similar lines in his latest analysis video, saying:
“Death cross will happen. It cannot be avoided any longer.”
When Bitcoin peaked in 2013, it took 135 days for the “death cross” to occur, during which time the price dropped 73%. The death cross confirms the downtrend and precedes an even deeper decline.
In 2017, death cross took 107 days to happen. BTC price is down 70% from its $20,000 peak, and the coin is down another 65% as the “death cross”, known as the upside-down crossing of key moving averages, occurs once again.
Similarly, when Bitcoin peaked in June 2019, this transition phase took 149 days for BTC to face a death cross. During this time, the price of the coin fell 53% and experienced an additional 55% correction on the downside.
According to the aforementioned trend, Bitcoin performs a post death cross drop between 107 and 149 days from the peak. If history repeats itself, this year’s potential death cross drop could likely occur anytime between late July or early September (red area shown in the chart above). However, trader and analyst Rekt Capital pointed to another possibility and recently tweeted:
“#BTC continues to underperform. At this rate, it looks like death cross will happen in the next two weeks.”
As a matter of fact, Bitcoin has already dropped more than 54% since its peak of $64,000 in April this year, and if the death cross happens immediately, its price will drop as low as $18,000 (according to past trends). Poppe also:
“Bitcoin is not in a very bullish pattern at the moment. It’s definitely not a sign of strength.” said.
However, if Bitcoin pulls back and continues to rise, the drop could be avoided, but this seems highly unlikely at the moment, according to Poppe. Still, pointing to the possible scenario of what might happen after death cross, he noted:
If Bitcoin stabilizes after the death cross, as it did in 2019 and 2013, and rises again right after, we could see a turn up and a golden cross.
At the time of writing, the coin was trading just under $35,000 and has dropped 10.07% in the past 7 days.