Bitcoin enthusiasts had to undergo one of the roughest reconciliations. After this, holders of the global digital currency had to experience threatening technical price patterns with a name urging more pain in due course.
The technical price pattern is known by the name – death cross. This measure showcases its indication whenever an asset’s average monetary value over the last 50 days descends below that of its 200-day moving average.
As per Mati Greenspan – developer of Quantum Economics, “Bitcoin momentum might head downward in the latter half of this week.” He added, “The chart is pretty clear.”
Bitcoin Fends off the Death Cross
Bitcoin averted itself from forming the death cross for yet one more day. Before Tuesday, it recorded only three up days since the beginning of 2022. The 2nd largest digital currency – Ether, also discerns to form a death cross, irrespective of the figure that it traded higher to around $3,233 on Tuesday. For Bitcoin price rose 2.6% to around $42,813 as of 2:44 p.m. in New York.
“Talking about the death cross, the report is diversified. It’s no shocker that the macro backdrop affects the price action, but a healthy pick-up has been witnessed over the last 24 hours,” says Juthica Chou -chief of OTC options trading at Kraken. He added on Bloomberg’s QuickTake Stock broadcast, “To date, I think the fundamentals are really strong.”
The reputation of Bitcoin around death-cross formations remains mysterious. It manifested the bleak pattern in June 2021, followed by one in March 2020. These bleak patterns were not obstacles to gains as they turned higher to form a golden in a time interval of just two months. But the coin traded lower one month later due to a death cross in November 2019.
“Be it the broader market index or stocks, death cross; whenever occurred; brought in the bad news priced already,” says Craig W. Johnson – Head of the technician at Piper Sandler & Co. He added, “I think time could be a wider venture to Bitcoin than the price at this point.”