Analysts believe Bitcoin’s death cross signals are coming! It will trigger a huge price increase.

Timothy Peterson says that the price recovers within two months of the death cross in 67% of Bitcoin price death cross cases.

The price of Bitcoin is approaching the “Death Cross” point, which is usually considered a bearish signal. But historical data suggests that recovery is usually as follows.

Some analysts predict that the price of Bitcoin could drop as low as $40,000 before the price enters their next bull run financial advisors to recommend Bitcoin ETFs to clients.

Could Bitcoin’s Death Cross Lead to Profits?

The price of Bitcoin is approaching the “Death Cross” point, but one crypto analyst believes that it may not be a real bearish sign as you might think. based on past patterns He sees it as a bearish trap before Bitcoin prices enter a major upswing.

A Death Cross is an indicator when an asset’s 50-day simple moving average (SMA) falls below the 200-day SMA, indicating a downtrend.

However, this indicator has historically had a poor track record of predicting future price movements. And this often leads to a “down trap” which is a reversal of the downward trend. This causes traders to close short positions.

Bitcoin analyst Timothy Peterson has shared a historical price chart showing BTC price performance one to two months after a death cross He says there have been 8 death crosses since 2015, with 67% of the crosses all death, BTC price ends up rising within 2 months of birth. and the average return is +18%

Bitcoin confirmed a death cross on September 12, 2023, which triggered a bearish trap, with BTC prices falling as low as $24,000 before rising to a new long-term high on March 14, 2024. This suggests that it may not the death cross is not very reliable. When used as a single indicator

One analyst named Trader Tardigrade supports the bearish trap theory and says that Bitcoin’s recent drop to $49,000 could be the start of a new sharp rally.

Trader Tardigrade shared a chart analysis from 2013 that shows a similar pattern in 2016 leading to a parabolic rally in 2017.

However, this pattern only occurred once. and may have to be confirmed in the current round. especially considering the current macroeconomic and geopolitical conditions.

Source: paper