Bitcoin price crash: Fears of a ‘death cross’ as cryptocurrencies tumble – ETH and DOGE drop
CRYPTOCURRENCY values have dropped overnight on fears that the market may experience “death-cross” conditions, but experts say “the most of the agony has already occurred.”
Bitcoin fell sharply from $36,040 at 10.45 p.m. last night to $34,935 at 5 a.m., a decline of 3%. Ethereum decreased 4.2 percent from 1.05 a.m. to 7.05 a.m., from $2,415 to $2,315 dollars. Overnight, dogecoin dropped 2.8 percent from 0.317 to 0.308.
The death cross, according to Cryptosrus’ George, is a “lagging indication” reflecting market moves over the previous weeks and months.
If the death-cross occurs, according to the cryptocurrency expert, “it does not indicate that bitcoin is going to nosedive, because much of the suffering may have already occurred.”
“We’re half way to the previous all-time high for bitcoin.
“Right now, we’re preparing to move up, exactly like we did in March 2020.”
He explained that the charts show conditions that are extremely similar to those in March 2020, when bitcoin prices were steadily rising.
Many analysts now believe that signs of a “impending” death-cross could be interpreted as a “contrarian buy signal.”
A death cross is formed by calculating the moving price averages over a period of 50 or 200 days.
These “lagging indicators” reflect averages of what has occurred, but they do not predict what will occur in the future.
A death cross is considered a “contrarian play” by experts.
Many experts believe that the most recent death cross, which happened on March 26, 2020, showed a “contrarian purchase signal.”
On March 26, 2020, the bitcoin to dollar price pair closed at $6,758.18, marking the most recent death cross.
The March 2020 death cross, on the other hand, turned out to be a contrarian buy signal in retrospect, as bitcoin to dollar rates had already hit a bottom weeks before, at $3,858 per bitcoin.
Bitcoin then rose steadily from $6,758.18 to $64,900 on April 13, 2021, reaching an all-time high.
“Our graphic portrays bitcoin at the largest discount to its 20-week moving average since the March 2020 low at $4,000,” Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, said in a research note issued on Wednesday.
“A longer-term discount at the end of 2018 brought the bottom closer to $3,000,” says the report.
He went on to say that this could be a signal for bulls to enter the market.
“Calls for $20,000 and.” Brinkwire Summary News,” he added.