An analyst warns that bitcoin is headed for an imminent ‘death cross’

Published:

13 one 2022 18:45 GMT

This is an event feared by investors and that on previous occasions was a precursor to price collapses.

New Zealand crypto market expert Lark Davis, who has about 830,000 and 480,000 followers on Twitter and YouTube, respectively, has warned that a ‘cross of death’ is about to appear on the Bitcoin price chart.

In this way he was referring to an event that, according to many, marks the point at which a short-term pullback turns into a longer-term downtrend.

This phenomenon is defined by a top-down crossover of the 50-day moving average price below the 200-day moving average.

“Bitcoin is about to hit the much feared ‘Death Cross.’ But does it matter?” the analyst wrote in a tweet posted on Thursday.

“Okay, there have already been 8 death crosses in the history of bitcoin. 4 of them bottomed (approximately) and 4 came before sell-offs of 30, 60, 61 and 65%,” he recalled.

“What does the cross of death number 9 hold for us?” he concluded.

The last time bitcoin reached a similar situation was in June 2021. At that time, the price of the cryptocurrency plummeted to approximately $28,000 for the first time since the beginning of that year, thus losing 56% of its value from the maximum of $64,000 registered a month before. .

The most popular electronic currency in the world suffered a sharp drop this Monday, reaching $39,712. It is currently trading around $43,300, according to data from the Coindesk portal.

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