Analyst Rekt Capital, past Bitcoin (BTC) He shared a detailed case study on death crossing cycles and their ensuing price corrections.
First of all, what is the death intersection? The most common death cross occurs when the 50 EMA falls below the 200 EMA on a technical chart. Over the past decade, the BTC price has gone through several death crossing cycles in different years.
According to the analyst, after the death cross occurred, the BTC price is correcting even more steeply.
The analyst stated that after the death cross, the price of Bitcoin decreased by 70% in 2013, 65% in 2017 and 55% in 2019.
However, in 2020 and 2021, the BTC price experienced major rallies after the death cross. According to the analyst, this is explained by the fact that the last two death intersections are already at the bottom.
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So what could this mean for #BTC going forward?
To answer that question, let’s keep in mind the following key Death Cross tendency:
“More often than not, the depth of a $BTC correction pre-Death Cross is similar to retrace depth post-Death Cross”#Crypto #Bitcoin pic.twitter.com/aNKyqDWJ8N
— Rekt Capital (@rektcapital) May 20, 2022
Rekt Capital Reveals Levels It Thinks Bitcoin Price Could Drop
Rekt Capital believes that BTC will follow the 2013, 2017 and 2019 trend more this year. The reason for this is that instead of reversing the trend, Bitcoin has corrected more than 36% since the last death cross in January 2022.
The analyst also stated that the BTC price lost 43% before its November peak of 2021 before experiencing a death cross.
Stating that a similar decrease can be experienced after the death intersection in January, the analyst said that the BTC price could regress to $ 22,700 in this scenario.
According to the analyst, after the death cross in January, the BTC price could drop 55% to $18,000, a 65% drop to $13,800, and a 71% drop to $11,500.
*Not investment advice.