The cryptocurrency market is continuously under the bearish correction and the values of the currency are also in the red zone. The bulls are trying to defend the market but they are unable to do so. Also, the death cross in the market is coming close, as the short-period moving average are intersecting beneath a moving average of long-period. This displaying on the Bitcoin’s charts and not only Bitcoin, but it is also showing on the conventional currency chart. This could be the hint of the bearish rally in the market.
On the member of the crypto community and analyst @cryptowelson also point out the ‘death cross’ among the short-period and moving averages of 200-day are about to happen. However, he didn’t tell the short-period MA ‘s time period, but it likely to be 40 or maybe 50-day moving average. On the other hand, the overall virtual currency market capitalization is moving near and near to the ‘death cross’ too. This could be the signals of the tough winter in the crypto market and might be signalized that the bear could not able to take it all over.
Groundhog Day: The death cross might also signal the expanded winter in the cryptocurrency market. The history of Groundhog Day is that if a groundhog named Punxsutawney Phil looks at his own shadow it resulted in the enlargement in the winter in the area as per the legend says. In the U.S. Groundhog day is celebrated every year on the 2nd of February.
As the identical myth is hinting that the crypto market will soon face enlarging winter throughout, which is known as ‘death cross’. This death cross happens when the moving average of short-period 50-days intersect below the moving average of a long-period of 200-days.
A chart is also shared on Twitter by the crypto analyst, Josh Olszewicz, in that chart, the overall market capitalization of the crypto market is coming near and nearer to the death cross of the moving averages of 50-day and moving average of 200-day. If it happens then it is signal that the bear market is still not finished with cryptocurrencies yet.
why'd no one tell me we have a death cross coming up on the total crypto mcap? smh
— Josh Olszewicz (@CarpeNoctom) October 3, 2019
History is Repeating Itself: The death cross has happened before in the market and it was on May 2018. It is not the first time it is happening and back then at the time of death cross, the bear market took over the cryptocurrencies including Bitcoin and altcoins in the market. Everyone remembers how brutal was the cryptocurrency bearish trend in 2018 at the time of death cross and this shows how badly it could affect the market.
Just a month ago, the overall market capitalization has completed a big value in the market and its total reverse of the death cross. However, it doesn’t impact the Bitcoin and other currencies’ values in the market. Also, during the year 2014-15 bearish really of the market, Bitcoin also finished its golden cross after its value got completely low in the market just to death cross again. Again in the week before time Bitcoin finished its golden cross and it remains there also take the value of the Bitcoin towards the mark of $20k.
Currently, the cryptocurrency market is not in good condition and it could face again the enlarged crypto winter. It might trigger the same situation that happened in the market earlier when the death cross happens. It might do the same to the bitcoin value and it first goes down in the bottom and then achieve the new heights in the market again.