BigONEpedia: Death cross appears! What will impact Bitcoin?
In the past week, BigONE has been paying close attention to whether Bitcoin will form a “death cross”, and on June 21, it appeared. What is the “death cross”? To explain, crossovers are technical patterns in K-line charts: compared to the long-term performance of stocks, cryptocurrencies, or the overall market, they indicate rapid price changes. When the 50-day moving average crosses the 200-day moving average on the chart, a crossover is formed. It is the “death cross”, which can be used to indicate future price movements.
Corresponding to the “death cross” is the “golden cross”. The appearance of the latter often represents the upcoming bull market trend. The emergence of “death crosses” is disturbing because it is well known that “death crosses” appeared before some of the worst bear markets in the past. “Death cross” is something that BigONE has been paying close attention to recently. With the appearance of the K-line chart of this form, it often means the beginning of a nightmare for long investors. On June 21, BigONE noticed Bitcoin's 50-day moving average fell below its 200-day moving average, triggering a “death cross” signal. BigONE has notified our investors to pay attention to market fluctuations.
BigONE is worried for some investors who choose long. On June 22, the price of Bitcoin briefly fell to US$29,000 and then rebounded to US$32,000. This means that Bitcoin’s price-rising advantage in 2021 has disappeared.
According to BigONE’s analysis, there may be many reasons for the decline in the price of Bitcoin in the second round. On the one hand, governments of many countries have banned Bitcoin mining due to policy and environmental protection reasons, urging miners to close the mines and move out; on the other hand, virtual currencies led by Bitcoin, like stocks, are too sensitive to negative news. Especially the news of Elon Musk or Tesla involving the cryptocurrency circle “trouble maker”. The term “death cross” originates from the stock market. The reason why people feel panic is that it has foreshadows the bearish behavior of the entire market. For example, the Wall Street stock market crash in 1929, the US stock market fell nearly 25% in 1938, the Hong Kong stock market crash in 1973 and 2008 Before the global stock market crash in 2015, there were “death crosses” before these events.
For Bitcoin, this is not the first time it has encountered a death cross signal:
In March 2020, the “death cross” appeared, and the currency's price fell sharply. Then Bitcoin fell below the low point, but after a short period of time, the price of the currency rose and rebounded;
In 2017–2018, the “death cross” appeared, and the price of Bitcoin fell by an astonishing 60% within 3 months;
In March 2018, a “death cross” appeared. Bitcoin reached a low point and then rebounded in April.
You can see that the “death cross” is an indicator of what has happened. It is not always an accurate signal of the future bearish trend, and the down period may also be accompanied by a strong rise or even a “golden cross”. Regardless of the reasons for the economic downturn, the appearance of the “death cross” on the Bitcoin K-line chart will make many investors feel uneasy. There may be a situation of people selling off their Bitcoin, while others believe that it is better to buy at the bottom. Good time, but no matter who you are, BigONE hopes that before placing an order, everyone can listen more, watch more, analyze more, treat the rise and fall of currency prices rationally, and avoid blind investment.
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About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
