Is Death-Cross in Bitcoin (BTC) a Risk for Bulls?

In our previous news in bitcoin We have conveyed the death cross formed at the $25,000 level.

While Bitcoin’s retracement to $22,000 levels raised the questions of whether more declines would come, analysts evaluated the impact of the death cross on price.

Analysts have different opinions on this. While some analysts think these crossovers are unreliable indicators, some analysts are worried that the timing will whet the bears’ appetite.

“Beware of Death-Cross!”

FxPro markets analyst Alex Kuptsikevich made the following statements in an investor note that took into account the death cross and subsequent price action in Bitcoin:

“Death-cross on the weekly time frame shows that caution should be exercised for near-term movements. This chart shows that Bitcoin retains its potential to return to the $18,000 and $16,300 bands.”

Coinciding with the crossover, the Silvergate bank crisis and the Fed’s re-faltering could be pointing to the right timing for the bears, according to the analyst.

According to Kuptsikevich, the 50-week price ($23576) remains a strong resistance with heavy selling. BTC will need to break this resistance to break out of this death spiral.

“Death-Cross is an Inverse Indicator”

Death-Cross has mostly worked in reverse so far, according to Timithy Peterson, Cane investment manager.

“Death-Cross is not a major event. It means that the 50-week average falls below the 200-week average, which is by definition a lagging indicator that appears after a rapid decline. “

According to Peterson, Death-Cross has always been an unreliable indicator until now.

“For the S&P 500, which has been traded for nearly 100 years, 9 such intersections have occurred. 1938, 1948, 1958, 1963, 1970, 1974, 1978, 2001, 2008. During these periods, the 50-day gain was 22%, the average loss was 9%, the average gain in 200 days was 46%, and the average loss was 11%. It shows that the rate of return at these intersections is high relative to risk.”