Don’t be fooled by this potential death cross rally on Bitcoin
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For those who don't know, golden cross and death cross are the terms used when Bitcoin's 50 day average price movement crosses the 200 day moving average. Golden cross is generally when the 50 day MA crosses above the 200 day MA indicating an uptrend meanwhile death cross is when the 50 day MA crosses below the 200 day MA indicating a downtrend A much more simpler way to interpret is this that during a golden cross the average 50 day price of BTC is better than the 200 day average price indicating a shift in momentum towards upside whereas during a death cross the 50 day average price of BTC is worse than the 200 day average price indicating a downtrend in momentum Now generally by the time a death cross is printed, the price is most likely to be oversold which sometimes results in a rally straight into the death cross like this example below from Oct 25, 2019 when BTC pumped 41% only for it to be rejected at the bull market support band creating a lower high and dumped further 38% to create a lower low Death Cross Rally from Oct 25, 2019 If we come back to today's chart we can clearly see that BTC has officially made a death cross on the daily but also the price has been oversold and hit a major support level at 25k (which also happens to be 0.382 fib on the macro trend). There's a high chance we rally from here into the death cross which conveniently sits inside the bull market support band. If this is to happen, its a 10% move to the upside between 27.6-28k levels Ultimately Bitcoin would need to test these resistance levels before going further down to 23.5k and possibly even 21.5k by the end of the year. This is a quite normal occurrence when BTC spends half a year in a uptrend its most likely to spend another half in a downtrend. Plus don't even get me started on BTC's historical infamous negative ROI during September, it's almost as if this whole symphony was pre written in time to play out perfectly submitted by /u/MollyPooper |
