There have long been more announcements of an impending death cross on the 1-day chart. Death Cross occurs when the 50-day moving average (short-term MA) crosses the 200-day moving average (long-term MA). The death cross chart pattern indicates a possible sell-off.
A 4-hour chart makes it easy to see the effect of the death cross on an asset. One such example of a death cross is one that took place on April 23, 2021. Once this pattern became visible, it is impossible to miss the impact it had on Bitcoin price back then. Before the cross, BTC was trading at $ 54,931, after the two MA intercepted the king coin began a downward retracement.
The price retracement fell to $ 47,000 before the recovery. The last death cross took place on May 21st. The cross hit the largest crypto coin at $ 54,469. the MA interception caused prices to drop that lasted for days before prices rose. The price hike started when BTC was at $ 30,000.
The current death cross is of great concern to traders as it is the first time it has appeared on a 1-day chart in the last 12 months. Given the devastating impact it is having on prices on a smaller scale, this only raises more concerns about the impact it has on Bitcoin price on a larger scale.
Given the outcome of previous negative MA interceptions, Bitcoin is sure to collapse. How deep BTC will go is a question that can only be answered, but the previous Death Cross on the 1-day chart doesn’t seem to have much of an impact on prices. This time cannot be otherwise, as the firstborn coin can drop below $ 30,000 before recovery. In a worst-case scenario, we could see the $ 20,000 support being scrutinized.
The crypto market is standing still as many expect the next step from BTC. Whatever the price, other coins are affected and the market as a whole will be badly affected by the Death Cross effect.
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