RATE Group | Looming Death Cross Suggests Bitcoin May Be Nearing Price Bottom
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Looming Death Cross Suggests Bitcoin May Be Nearing Price Bottom

19 Oct Looming Death Cross Suggests Bitcoin May Be Nearing Price Bottom

Posted at 02:52h in Cryptocurrency News by

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  • Bitcoin’s 50- and 200-day moving averages (MAs)look set to produce a death cross in the next week or two. Historical data shows the cryptocurrency could bottom out if the cross is confirmed.
  • BTC may drop to support near $7,430 before then.
  • A break above $8,820 is needed to invalidate the bearish lower-highs set up and confirm a bullish reversal.

Bitcoin may be close to bottoming out, as a popular contrary indicator is teasing a bearish turn for the first time since March 2018.

Potentially producing a so-called death cross, the 50-day moving average is falling fast and may drop below the 200-day MA over the next week or so. If confirmed, the chart event would be the first such crossover of these averages since March of last year.

A death cross is a long-term bear market indicator, according to technical analysis theory. In reality, however, it is a lagging indicator and often ends up trapping sellers on the wrong side of the market, as seen in the charts below.

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