Bitcoin Death Cross: How to Gauge Growing Price Weakness in Crypto

Some people see Bitcoin and other cryptocurrencies as long-term assets to buy and hold with the expectation of appreciation over time. Others take a more active approach, and regularly buy and sell cryptos by studying the charts, reading the markets, and identifying telltale signs of reversals in price momentum and profit opportunities.

Known as chart patterns, these signs appear on Bitcoin and other crypto candlestick charts as a result of price action, technical indicators, or a combination of each. The most prominent chart pattern of all is the “death cross.” Here’s the rundown on this powerful pattern, and the Bitcoin death cross strategies you can use to bring life to your crypto portfolio.

What Is the Bitcoin Death Cross?

The Bitcoin death cross is a chart pattern formed whenever the 50-day moving average crosses over and below the 200-day moving average, signaling a long-term downward swing in price momentum.

Bitcoin’s 50-day moving average is nearing its 200-day moving average and is now at its closest point since 2015. A crossing of the two lines would signal fresh weakness and a move technical traders have dubbed the crypto “death cross.” If you’re wondering about a crypto crash, along with many other current traders and investors, a Bitcoin death cross may provide the answer.