Bitcoin had a ‘death cross’ in the days leading up to its bear market. The death cross is when the 50 and 200 day moving averages move below the closing price of Bitcoin for an extended period of time, becoming “inverted”.
The “death cross btc” is a data-point that has been used by many analysts to predict the bitcoin price. The “death cross” is when the price of an asset crosses below its 50-day moving average.
New research warns that Bitcoin (BTC) might drop more than 40% from last week’s low, as one expert tackles what he calls a bear market.
Rekt Capital, a prominent trader and analyst, suggested in a series of tweets on May 20 that BTC/USD should drop to roughly $20,000 to comply to historical standards.
BTC price objective for death cross is now $22,700.
The so-called “death cross” constructs on the Bitcoin chart have sparked a lot of controversy. The decreasing 50-period moving average (50MA) crosses beneath the 200MA in these cases.
Such an occurrence has often produced significant price declines in the past, marking what Rekt Capital refers to as “generational bottoms.”
“Most of the time, the depth of a $BTC correction before a Death Cross is comparable to the depth of a retrace after a Death Cross,” he concluded.
When it comes to post-death cross losses, however, both March 2020 and May 2021 defied the norms – in both cases, the death cross signaled the bottom.
The historical tendency seemed to reappear in January 2022, when a death cross event occurred after BTC/USD had already fallen 43 percent from its all-time highs of $69,000 in November 2021.
However, adding another 43% brings the pair’s total to $22,700.
So, given that #BTC has dropped -43 percent since November 21, just before to the Death Cross, $BTC might retrace a little further to achieve a post-Death Cross retracement of -43 percent, if history repeats itself.
This would provide a $BTC#Crypto #Bitcoin of $22,700 pic.twitter.com/aH91tn2xmr
May 20, 2022 — Rekt Capital (@rektcapital)
“What’s fascinating about the post-Death Cross collapse scenario is that it would result in a $22000 BTC,” the last tweet said, accompanied a graphic illustrating major return on investment (ROI) chances amid generational bottoms.
“Which ties in with the 200-SMA (orange) which tends to offer fantastic opportunities with outsized ROI for $BTC investors (green circles highlight this).”BTC/USD annotated chart with 200-week MA. Source: Rekt Capital/ Twitter
Confronting the bear market
Filbfilb, the co-founder of trading platform Decentrader, said the moment has come to accept that Bitcoin is in a bear market.
Bitcoin must hold current price levels to avert a “far deeper” drop: Analysis
Filbfilb identified the one-year MA as the critical level to reclaim in order to leave the quagmire that followed when it was lost as support in early April in his most recent market commentary on May 20.
“In the end, we’re still in a bear market. This has been the case since price withdrew from the 1-year moving average, which we identified as a critical concern […] when price was rejected from that level, “he noted.
“Until we can reclaim that level we have to face the reality that we are in a bear market for $BTC.”BTC/USD 1-day candle chart (Bitstamp) with 50, 200-day MAs. Source: TradingView
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The “bitcoin exchange reserves” is a data point that hints at a 43% drop in the Bitcoin price. The death cross is an indicator that has been used by traders for some time now, and it was not until recently that it became popularized. According to the data, this pattern could be a sign of a bear market.
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