What Happens When Bitcoin (BTC) Nullifies Death Cross?
U.Today: A “death cross” pattern was formed when the 23-day moving average on the Bitcoin price chart crossed below the 200-day curve this week, namely on Monday. A fall is anticipated following this foreboding technical analysis formation.
Unexpectedly, though, the price of Bitcoin has increased by 3.8% in less than three days following the appearance of the death cross, and it is currently trading at over $88,000. It could be too soon to declare the bearish pattern incorrect. Bitcoin is now trading at the 50-day moving average, which is likewise falling, after rising above the 200-day and 23-day moving averages.
The cryptocurrency would keep rising until the 50-day curve passes below the 200-day one, if one were to attempt to think about a hypothetical situation. It appears inevitable that this will create another death cross and could indicate a decrease that the relevant pattern did not disclose.
However, in the interim, Bitcoin can keep rising all the way to $89,700, which is also the location of the 50-day moving average and the significant price resistance level. The market’s Monday death cross may remain invalid until the current crisis is settled, but it is still important to remember.
Indeed, a single cryptocurrency market signal is insufficient to predict the future. But when symbols like this death cross are overused, particularly on large time frames, that is when the probabilities start changing.
This content was originally published on U.Today
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