bitcoinWe see a death cross on the weekly chart at . In this article, we’ll look at what that means and how Bitcoin has reacted to similar intersections before.
What is Death Intersection?
death intersection It refers to the moments when the short-term moving average crosses the long-term moving average from top to bottom. This cross is an indicator of price weakness and is considered a bear market signal.
When we look at the chart of Bitcoin, we see that the 20-week moving average is about to cut the 50-week moving average from above.
Price Movements After Previous Similar Intersections
post 2013 bull A similar intersection and the price action after it is as follows.
post 2017 bull A similar intersection and the price action after it is as follows.
Here we see that the price decreases before the intersection and rises during the intersection. However, Bitcoin, which did not go above the 50-week average, continued to maintain its downtrend.
2019 mini bull A similar intersection after and the price action after it is as follows.
Looking again at the current chart, we see that the current chart is more similar to the pattern in 2017. (At the crossover, the price is below the 20 and 50-week averages and above the 100-week average)
Therefore, despite the death cross, we may rise to retest the 50-week average (currently $46148) in the coming weeks and face some resistance in this area.
However, what we see on all charts is that the post-intercept price has decreased by the 200-week average, even though it has experienced intermediate increases.
Therefore, if the good scenario is realized and we rise to the level of $46,000 again, it would be healthy to reduce our risks a little in this region and wait for the price to touch the 200-week average.
*Not Investment Advice.