⭐️ Will History Repeat as Bitcoin Price Flashes Tenth Death Cross?
Bitcoin price faces death cross, signaling bearish outlook, but on-chain data shows whales buying, as BTC price recovers from weekend crash
Bitcoin price has flashed the tenth death cross in the past 13 years.Historical data shows that, on average, BTC crashes 27% after this bearish signal appears.On-chain data shows whales are unbotherd by the death cross and accumulated after recent dip.
Bitcoin price slipped below $60,000 after the weekend crash, but has since recovered close to retesting this psychological level. The death cross showcases the potential bearish outlook that BTC could face, but on-chain data clearly shows whales or institutions are unbothered by this sell signal.
🔸 #Bitcoin Price Faces Death Cross
Bitcoin Price flashed the death cross on August 11, signaling a bearish outlook for the cryptocurrency. This sell signal is flashed when the 50-day simple moving average crosses below the 200-day simple moving average. This popular bearish signal has caused major crashes for BTC in its 13-year history.
Six out of the last nine times BTC Price created a death cross, there was a steep correction. On average, BTC crashes 27% after this signal is flashed. Ignoring the September 2015 crossover, the average crash is 30%, with the largest correction of -47%.
But not all 50-day and 200-day moving average crossovers have been bearish. The March 2018 death cross catalyzed a 45% rally.
🔸 Will #BTC Price Crash?
Bitocin price has already triggered a steep correction influenced by the macroeconomic uncertainty between late July and early August. During a bull run, these corrections are often undone quickly.
If the worst were to happen, then the death cross would prompt a prolonged correction for BTC. Assuming history rhymes, then an average crash of 27% would put Bitcoin price at $43,987.50, close to the weekly support level at $47,789.
The technical outlook shows no significant bias, but a close at on-chain data shows investors are buying.
