Friday, August 6, 2021
Home Technology Bitcoin Outlook Clouded by 'Death Cross' Chart Formation: All the Details

Bitcoin Outlook Clouded by ‘Death Cross’ Chart Formation: All the Details

For technical analysts watching Bitcoin, an important and potentially bearish chart formation just happened in the cryptocurrency: A “death cross.”

The formation could signal further losses ahead. Here are some details about what this is:

What is a death cross?

Technical analysts use the term “death cross” to describe when a short-term average trendline crosses below a long-term average trendline — signalling a change in price momentum. The 50-and 200-day combination often attracts the most attention.

Over the weekend, Bitcoin’s 50-day moving average fell below its 200-day moving average. As of June 22 (1:50pm IST), Bitcoin price in India stood at Rs. 24.16 lakhs.

What has happened to Bitcoin?

Bitcoin, the world’s biggest cryptocurrency, has long experienced volatility. It has lost over 20 percent in the last six days and is down by half from its April peak of almost $65,000 (roughly Rs. 48.25 lakhs). Market players are citing jitters over China’s expanding crackdown on Bitcoin mining in thin liquidity for the losses.

What should investors be watching?

Crucial for Bitcoin will be its ability to hold above its May 19 low of $30,066 (roughly Rs. 22.31 lakhs), which is an initial target for bears. Breaking below that level would reinforce the negative signal of the death cross.

Is the death cross infallible?

No technical analysis indicator is perfect, including the death cross, in isolation. Most chartists use a combination of studies to derive directional signals.

For example, the last death cross on the Bitcoin chart occurred in March 2020 after the cryptocurrency had plunged nearly 60 percent over a six-day period and just before it started a historic rally of more than 1,000 percent over the next year.

© Thomson Reuters 2021

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Source link


10 quick tips of using Social Media to grow your business online!

Online Social Media Networks are the fastest growing channels. According to a latest report, Internet is about to hit 2 billion users by the...

4 Reasons you should buy an R4 karte

You can certainly do wonders with your Nintendo DS gaming console when you have the R4 karte available to be used with it. If...

For What Reason The Laptops Are Significant?

Innovation is progressing quickly in this day and age. PCs are turning out to be increasingly more significant these days - essentially...


Please enter your comment!
Please enter your name here

Most Popular

Read these three books to master the art of money management

The three non-fiction books listed below have all the necessary information to turn you into a money management pro. You can find...

3 Reasons to Implement the Organic and White-hat SEO Optimization Techniques

The SEO optimization techniques are being implemented by a large number of businesses and advertisers to attract online visitors to their professional websites. Most...

Factors You Must Know About Minimum Amount Due In Credit Card

The purchase of some costly items has made it easy for us with the use of credit cards. But the card owners...

Decorate Your Fireplace With The Best Wood Logs For Sale

The fireplace is one of the primary focal points of holiday celebrations and get-togethers. You must buy the firewood in Sydney that’s...

Recent Comments