Bloomberg: Bitcoin Price Is About to Form Death Cross First Time Since March 2018

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Thu, 10/24/2019 - 07:15
Alex Dovbnya
The Bitcoin price could experience another drastic price drop once it forms a bearish death cross
Cover image via www.123rf.com

According to Bloomberg, Bitcoin is on the verge of forming a death cross for the first time since March 2018. 

This bearish pattern is formed when the 50 moving average (MA) of a certain asset drops below its 200 MA. It's a technical signal, which usually serves as a harbinger of further sell-off, which essentially happened last year. The top coin by market capitalization plunged to as low as $3,100 back in December after brutal crypto winter.      

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While it's tempting for the bears to assume that another crypto winter is coming, a looming bearish crossover could also result in a significant price increase. Coindesk's Omkar Godbole mentioned that it's a lagging indicator, which could set up a nice bear trap. Based on historical data, the top coin could find a new bottom once another death cross is confirmed. 

Conversely, when the long-long term MA of a certain asset falls below its short-term MA, a golden cross is formed. However, this bullish chart pattern served as a bull trap this year. 
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On July 30, U.Today reported about Bitcoin forming its first golden cross since February 2016 when the top coin was changing hands at around  $9,700. Despite a few fakeouts, Bitcoin never went to the proverbial moon and experienced a significant correction to the current level of $7,400, CoinStats data shows. 

Will Bitcoin find a local bottom at the $7,400 price level? Share your take in the comments!     

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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