What Can We Expect from Bitcoin After Death Cross | TechHarry

What can we expect after Bitcoin death cross

Bitcoin has been touching the mark of $40,000 from a month. Major whales are dumping and pumping Bitcoin to take major profits. After the dump of Bitcoin, crypto whales accumulated thousands of bitcoin at the price of $46,000, $42,000, and $40,000 (it will surely give millions to the whales after the Bitcoin pump).

But it is not what we will talk about. The news is, you've already heard about the death cross. Death Cross of Bitcoin has been seen this week and according to some analysts, it may be the reason for more dumping of Bitcoin next weekend. But there's are twist. But first, let's discuss what the death cross really is.

Bitcoin death cross

What is Death Cross? Death Cross is a major event as well as not-so-major event according to some analysts. Death Cross is a measure that shows whenever Bitcoin or other crypto's average price drops below its 200-day moving average over the last 50 days.

As per the technical basis, Bitcoin will have to parse through $45,000 resistance. "Bitcoin needs a bit more recovery as RSI is still below 50, indicating that it is in the oversold zone. If bulls try to make an upside move, then the price may soar to around $45,000 level although, in case of any misstep, prices can fall to $38,000-$36,000 zone," Shivan Thakral, CEO, BuyUCoin told The Economic Times.

Why Should We Take a Long Breath and Stay Positive After Death Cross?

Taking from the previous incidents of the death cross, we have learned a very important thing. It is that Bitcoin always falls down after the death cross. It can fall to the support level or it can fall to 1% to 2%. But after the death cross, Bitcoin pumps a lot and gives its praisers a decent profit. Following Bitcoin's path, first, every big market cap. crypto gains a lot, then a small market cap. cryptos start pumping and then after a week or two, meme coins show their potential.

As a result, we can surely say finally that bad days are going and we can see big-big returns in our portfolios in the upcoming weeks.

Last time, Bitcoin formed a Death Cross in June 2021. It also showed in March 2020 but was soon overcome as the trend reversed and ended up forming a Golden Cross in fact when 50-day MA overtakes the 200-day MA soon after.

Crypto-Stocks Correlation

Crypto Analysts are also seeing an increased correlation between the crypto market and the stock market as per crypto and stock-movement charts. Data from the International Monetary Fund (IMF) shows that the correlation between Bitcoin and the US stock indices climbed to 0.36 in 2020, from 0.01 between 2017 and 2019. And it can be seen above 0.44 in between the stock indices and Bitcoin which is the highest observed value since Q4 2020. It also indicates greater interconnectivity between these two price movements.

This directly observed that shocking price fall in stocks affects the price of Bitcoin and vice-versa. This can also mean that stocks & indices whales have started investing in Bitcoin too. If this is true, it can be great news for Bitcoin and other cryptocurrencies. This will affect positively the whole crypto market and investors will take huge returns.

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