Bitcoin fell below $ 8,000 this week. Investors discussing what is happening and begin in earnest to panic.
The graph demonstrates the approach of Bitcoin cryptocurrency to the “death cross”. This term is used to describe the crossing of the 50 day moving average and the longer-term 200-day moving average. In the case of Bitcoin 50 day moving average has already crossed the 100-day average and approaching the 200-day moving average on the minimum distance.
Analysts often regard such behavior of course as a clear bearish signal in the market, which means that the price will continue to fall until you find the level of demand. Looking at the current prices wonder — Bitcoin has no interest?
“When we talk about Bitcoin, I think it’s important to remember that he doesn’t have much history to identify long-term trends,” said Wednesday CNBC Jim Iuorio of TJM Institutional Services.
Not all believe that the cross of death is a blow to Bitcoin. Trader, “Fast Money” Brian Kelly said that he personally sees Bitcoin chart uptrend from August.
“Bitcoin is as any asset on the foreign exchange markets, follow the technical indicators. Why we are so important levels of support. If we manage to maintain these levels, we will confirm the uptrend since August”.
The last time Bitcoin was faced with the death cross was in September 2015. A month after this first cryptocurrency is dramatically increased from 230 to 500 dollars.
So do not despair and panic. In fact, it can be a bear trap, at least in the short term. And historical data seem to confirm this argument.
- Bitcoin reaches $ 340 (11 April 2014) immediately after it had been confirmed by the death cross, and by June 2014 already costs $ 680.
- Another, more serious death cross occurred in early September 2014 and January 2015, the Bitcoin fell more than 65% to $ 170. It was during the reign of the bears.
- Meanwhile, the death cross in mid-September 2015 in no way led to the fall of Bitcoin prices. In mid-August BTC reached $ 162 and has continued to grow even after the confirmation of the death cross.
Thus, in two of the three cases, the crosses of the death of a major collapse did not happen as the end of Bitcoin. This time the death cross may lead to a further drop to $6600. However, if Bitcoin crosses the $6600, we can not exclude the future sale of up to $6 000.