Bitcoin price continues to fall for the last 4 days. Moreover, it only strengthened the inevitable situation for Bitcoin Death Cross. Many analysts and market commentators have talked about its potentially alarming impact on the market. In fact, the market in general is already shaky right now, so another bearish event might be the last thing the industry needs.
But to get an analytical and statistical measure of the Death Cross, it’s worth looking at previous events. So, we’ve reviewed every Death Cross event for Bitcoin since 2014.
What is Bitcoin “death cross”?
Avid readers of technical analysis will be familiar with the concept of the Death Cross, but for beginners it is defined as an event that happens when the 200-Day Moving Average (200-DMA) completes a position above the 50 Moving Average (50). -MA). As can be seen on the chart, a crossover between the two moving averages will occur in the next few days, thus starting the Death Cross.
death cross report
Now, there has been more than one Bitcoin Death Cross in the last few years, and after carefully analyzing the outcome of each event, we have formalized the data in the table below.
Since April 2014, Bitcoin has seen six Death Cross events so far. The two biggest crossovers occurred after the respective bull runs in 2013 and 2017. These were also the only events that ended in cumulative losses during the period. The other four times Bitcoin hasn’t had a major drop, with the previous two death passes indicative of a generally profitable period at last.
The 30 days and 60 days continued to be the most decisive period during the Death Cross when huge gains and losses were observed.
Now, the common deduction from the aforementioned dataset is that the so-called bearish indicator produces a mixed result. The two strong death crosses on September 4, 2014 and March 30, 2018 lasted 278 days and 103 days, respectively, after the ascension cycle peak. This suggests that bearish fundamentals were laid before the averages reversed downwards.
At the time of writing, Bitcoin had climbed to its peak price 65 days ago and we are probably 3-4 days away from this recurring crossover event.
Is the upcoming Death Cross the endgame for Bitcoin?
Now, there is a possibility that the upcoming moving average crossing will trigger a strong bearish period for Bitcoin, but based on previous events, this is not a reliable bearish outcome. 4 out of 6 cycles were periods of weak decline. However, in the current market, perhaps it’s safer to be patient and let volatility take control again. The upcoming death cross may not cause heavy losses this time, as it keeps the agenda very busy.