It’s a crazy era! Throughout the week, the markets remained volatile. The fight between the bulls and the bears ended with the bulls gaining the advantage.
However, Bitcoin’s daily moving averages (MA) have formed a “Death Cross,” a market signal that some traders read as implying that the cryptocurrency will continue to decline.
Anything under $30K is the greatest moment to acquire Bitcoins:
A constant dip in the Bitcoin price over the months has concerned the investors, but many financial experts still believe that this bearish market where Bitcoin is trading at just around $30,000 is nothing, but just the best price for investors to enter the market.
Ben on the BitBoy Crypto YouTube channel on Sunday said that “this bear run of the market is just one wrinkle in the history of this market and affirmed that there could be no better time to buy a Bitcoin than this.”
Death Cross -The obvious 20-50 Factor!
Ben explained to his audience about the Death-Cross of Bitcoin which is more likely just another term to hit the bottom for crypto.
So, what does the death cross actually imply? When the 50 EMA crosses UNDER the 200 EMA on a technical chart, this is known as a Death Cross. In the last ten years, Bitcoin has gone through several death cross cycles, each in a different year.
To simplify for the beginners he classified the death cross as it happens when a short-term MA closes below a long-term MA, the foreboding indication verifies its presence.
The 50-day MA and 200-day MA are the classic moving averages for chart watchers. However, a death cross between MA with distinct timeframes is possible.
It is also interesting to see that the 50-20 crossing has historically resulted in the price of bitcoin falling. Furthermore, it has shown to be a more accurate real-time predictor of the cryptocurrency’s bias than the traditional 50-200 crossover, which appears after a price drop or spike.
So is it heading towards a prolonged bearish phase?
But the last era also indicates that the pattern will not result in a prolonged bearish phase for the leading cryptocurrency. For example, the last time it happened in August 2020, BTC/USD fell 18 percent to $9,813.
Using some stats and research data gathered across the internet, Ben revealed that the 50-day moving average of Bitcoin is below the 200-day moving average and that is a Death-Cross-like situation for Bitcoin. It has been volatile towards the downside, and hence the dramatic drop which could lead to hitting the bottom soon.
Though Ben did not seem at all concerned with this, as he revealed that even around $10,000, there was a stable price for Bitcoin, he does not see it falling to that level.
Trajectories of the Past
Financial studies have shown that we are in the midst of a bear market in crypto exchanges, which has happened before. One such scenario was experienced during the epidemic, but Bitcoin recovered back to its all-time high.
According to Ben, “Bitcoin is a young asset. There is not enough data to study its movement entirely but during 2013-14 and 2017, we have seen it getting to double top and also hitting the bottoms. Hence, one should not be concerned about this bear-run in the market as it is just another wrinkle in the market that will allow us to study it better.”
Best Time To Buy!
On the question of whether Bitcoin is a good investment right now, Ben firmly stated that anything below $30,000 for Bitcoin is a steal deal. Like recently we saw 4 years’ all-time high for Bitcoin, there can be those days again. However, he also advised against investing all the amount while keeping nothing in spare for the time of need, which may cause people to regret it in a short time.
Bottom Line
Bitcoin may be on the verge of a death cross, but it still needs the support of its investors to survive. BTC investors are concerned about how the price of the cryptocurrency can benefit from tracking all financial market assets. It’s difficult to predict whether Bitcoin will fall to US$30,000 or not, but it will undoubtedly take a long time to regain its former grandeur.
