Bitcoin “Death Cross” Panic Causes Markets To Go Into Meltdown Mode

Traders from the stock market to cryptocurrency rely on price and volume  charts to gauge the value of an asset. Bitcoin is currently approaching  the dreaded death cross — when charts reflect a “crossover” between the  50-day (short-term trend) and 200-day (longer-term trend) moving  averages, as gracefully pointed out by CNBC. 

While Bitcoin has already been trading in a bear market for 2018, the  death cross [FIAT: $6,200] would mean that it would become more of a  trend. Which could spell the end of BTC as we know it. At least that’s  the hype behind the recent FUD put forth by mainstream media.

A chart by Coindesk  below shows the 50-day moving average and 200-day moving average in  which the author notes that the FUD put forth by MSM might be setting  bears up for a trap who will be on the wrong side of the trade as BTC  goes into a massive much-needed rally. 

BTC price dropped below the 100-day moving average, which has caused some traders to be skittish. Some strategists are even saying that  the death cross could yield a big sell-off in BTC, possibly to as low  as $2,800, a level last seen in September 2017. To further push that  fear uncertainty and doubt, Jim Iuorio of TJM Institutional Services  told CNBC that despite the lack of historical evidence in Bitcoin  trading – 

 “Any time the 50-day crosses the 200-day, it should flash a warning…and  when you couple that with the fact that bitcoin has been trending  steadily lower since the launch of futures, I think that it is a major  negative.” 

Others like “Fast Money” trader Brian Kelly points out that there seems  to be an uptrend in the chart of Bitcoin that has been in play since  August. 

  “Bitcoin, just like the spot FX markets, follows technicals closely,  therefore these support levels gain more importance,” he wrote to CNBC.  “If these levels hold, then it will confirm the uptrend from August is  still valid,” Kelly said. 

Technical analysis throws reason out the window and focuses on what  drives the markets more than the why. It focuses on long-term charting  data to determine where the price is headed and by how much if it was  foolproof. The problem with applying technical analysis to Bitcoin is  that cryptocurrency doesn’t have decades of trading history to draw an  analysis from and has typically been unpredictable, let alone to draw a  conclusion that BTC is crossing a “death cross.” 

Historically, a death cross trading pattern in the stock market could be a “bullish contrarian indicator,” as the Wall Street Journal pointed out years ago. 

If we examine the trading data, Bitcoin reached a death cross in 2015  when it was trading in the [FIAT: $200] range. However, in that same  year, the Bitcoin price more than doubled to nearly $500. Bitcoin hasn’t  touched on a death cross since that time. 

Bitcoin has plunged about 38% year to date, but would still need to fall another 88 percent to erase all of the 2017 gains. 

Another few factors that may be attributing to the current downtrend in cryptocurrency markets – Reddit no longer accepting Bitcoin, and a memo of the Bank of Montreal (BMO) banning its customers from using accounts to transact with cryptocurrency. 

But in almost sure certainty the markets correlate to when MSM opened  its big mouth and flashed “Bitcoin Death Cross” across trader’s  television screens. It is highly unlikely that BTC plunges down to zero  and MSM should just keep dreaming about Bitcoin being a traditional  bubble. 

Bitcoin is currently trading at [FIAT: $6,939.81] down -7.30% according to Coin Market Cap at the time of this report. 

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