The market is turning red again today after the decline that started three days ago has continued. The bitcoin (BTC) price has thus returned to $35,000, a very important support for the bulls to keep whole. In addition, we see the 50 days Moving Average (MA) below the 200-day MA which is also called a death cross calls. What does this mean?
Bitcoin (BTC) ‘death cross’ a fact
With the negative movements of the bitcoin price over the past month, the 50-day MA is now below the 200-day MA. Analysts call this a death cross, which obviously doesn’t sound right. It is a signal that any further declines are on the way now that the market is slowing down bearish starts spinning. The Dutch analyst PlanB shows a graph on Twitter that is not all bearish after all.
“☠ Death cross is hier ☠
Study this chart to see what happened the last two death crosses, Q4 2019 and Q1 2020.”
☠ Death cross is here ☠
Study this chart to see what happened last two times the death cross happened, Q4 2019 and Q1 2020. pic.twitter.com/6u0mgpbonI— PlanB (@100trillionUSD) June 19, 2021
In the comments, PlanB says that a death cross is a lagging indicator, meaning that the death cross usually forms after the greatest damage has already been done. The 50-day MA is the average price over the past 50 days, and the 200-day MA over the past 200 days. In that sense, these MAs represent an average of the past price.
And now?
The price level that is important to keep an eye on right now is the $35,000. This price zone has been providing support since mid-May, so it is important for the bulls to let this support last again. The well-known analyst Luke Martin sees a possibility that the price can make a new bounce from this price zone.
“BTC setup is eerily similar to last week’s.
Want to see this 36k/37ks hold up and target 45k.
Run it back turbo.”
$ BTC setup looks eerily similar to last week.
Want to see 36k/37ks hold and targeting 45k.
Run it back turbo. pic.twitter.com/MggWLZVgmz
— Luke Martin (@VentureCoinist) June 17, 2021
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