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Death Cross Comes to Bitcoin, Analyst Points Out

Mon, 02/13/2023 - 08:10
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Arman Shirinyan
Technical signal you would never want to see occurs on Bitcoin, bringing some fears back to market
Death Cross Comes to Bitcoin, Analyst Points Out
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The cryptocurrency analyst Benjamin Cowen has recently highlighted a significant technical pattern on the weekly chart of Bitcoin, known as the "death cross." This pattern occurs when a shorter-term moving average, such as the 50-week, crosses below a longer-term moving average, such as the 200-week. In financial terms, it is a bearish signal that suggests a potential trend reversal and a prolonged downward trend.

The death cross is often seen as a sign of bearish sentiment on the market and can lead to a significant price drop. It is a warning for traders to be cautious and for long-term investors to consider selling their holdings.

This pattern can also indicate a change in market sentiment, from bullish to bearish, and can result in a prolonged period of price consolidation.

Despite the recovery that began in January, Bitcoin was unable to enter a prolonged uptrend and quickly reversed two days ago, returning to the $21,000 price level and consolidating at the 200-day moving average. This could be a sign of a more significant trend reversal for the leading cryptocurrency.

However, it is important to note that the death cross is just one of many technical indicators used by traders and analysts to make informed decisions. While it can be a valuable tool in understanding market sentiment, it is not a guarantee of future market performance.

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At press time, Bitcoin is trading at $21,827 and has recently gained 1.6% to its value in the last 24 hours, successfully bouncing from the local low of $21,476. Unfortunately, the golden cross traders expected on the daily chart of the assets did not happen.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.