Bears Begin To Close In as Death Cross Looms…

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The dreadful death cross– the moniker for when a short-term moving average crosses beneath a long-term moving average. It’s appearance on the charts of Bitcoin and other financial assets– crypto or traditional– can mean a long-term downtrend ahead.

To the consternation of crypto investors, the complete cryptocurrency market cap is inching closer and closer to completing a death cross. If it completes, it could signify that the market will reestablish its brutal crypto winter and that the bear market may not effectively be over at all.

Groundhog Day: Death Cross Could Mean Extended Crypto Winter

Year after year on February 2, the United States celebrates Groundhog Day. If the groundhog, Punxsutawney Phil, sees his shadow, then the folklore recommends that the area remains in for a prolonged winter.

A comparable superstitious notion recommending a prolonged crypto winter season might soon play out throughout the crypto market, called the death cross. The ominous-sounding name is offered to when a short-term moving average– the 50-day MA for example– crossed under a long-lasting moving typical such as the 200-day MA.

After analysing a chart shared by crypto analyst Josh Olszewicz, the entire cryptocurrency market cap – an aggregate of Bitcoin and all other cryptocurrencies in the industry – is inching ever closer to executing the all feared death cross of the 50-day moving average and 200-day moving average. Should it actually complete, it is a HUGE indicator that even despite this recent resurgence, the bear market may not actually be over after all.

History Often Repeats What Happened After Previous Death Crosses?

The last time that the overall crypto market cap death crossed, was in May 2018, and following that cross, the bearishness really took hold of Bitcoin and the rest of the altcoins throughout the space. The powerful sag that followed shows simply how damaging a death cross can be.

The total market cap finished a golden cross only a few short months ago– essentially the exact opposite of a death cross– however it stopped working to make a strong effect on crypto prices sans Bitcoin.

Interestingly, throughout the 2014-2015 bearish market, Bitcoin itself completed a golden cross after it bottomed, just to death cross when again, then in the weeks ahead again completed a 2nd golden cross that took hold and remained crossed all the way to the Bitcoin’s all-time high of $20,000.

Although  certain factors aren’t exactly looking healthy for the crypto market at the moment, and with the possibility of a lengthy crypto winter ahead, should the total market cap repeats what Bitcoin previously did at its bottom, then after a short correction will come new highs, over and over again until such time as a brand new peak is reached and the next all-time high is set.

Featured image from Shutterstock

The post Crypto Market Death Cross Inches Closer, Will The Bear Market Return? appeared first on NewsBTC.

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