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Trading veteran Rekt Capital indicated two ways the "Death Crosses" pattern might affect Bitcoin's (BTC) price peformance and shared a warning for bulls who are a little too excited.
Two types of "Death Crosses" for Bitcoin (BTC)
Rekt Capital compared the historic performance of Bitcoin (BTC) prices in 2013-2021. He compared the ways Bitcoin (BTC) performed after meeting the so-called "Golden Crosses" and "Death Crosses."
#BTC is down -40% since the Death Cross occurred in early Jan '22
— Rekt Capital (@rektcapital) May 20, 2022
History suggests that whenever a Death Cross occurs, #Bitcoin experiences deeper downside
Now that one has occurred, what could we potentially expect?
Here's a thread with my analysis about the $BTC Death Cross:
These signals are registered when the 50-day and 200-day moving averages for Bitcoin (BTC) price lines cross each other: a bullish Golden Cross appears when the 50 EMA spikes over the 200 EMA, while a bearish Death Cross flashes when the 50 EMA drops below the 200 EMA.
Historically, in 2013, 2017 and 2019, the Bitcoin (BTC) Death Cross marked the middle of the recession: the price dropped equally before the Death Cross flashed and after it.
At the same time, in 2020 and 2021, Bitcoin (BTC) the Death Crosses marked the bottoms; they triggered massive spikes.
According to Rekt Capital, based on "pre-Death Cross" performance, Bitcoin (BTC) is following the 2013-2019-ish pattern now.
We're still too early for Bitcoin (BTC) bottom
As such, Bitcoin (BTC) can still drop well lower than it sits nowadays. Based on past performance, an analyst would not be surprised by -55%, -65%, -71%, and even -84% corrections from today's levels.
Given the previous Bitcoin (BTC) peak over $69,000, such a Crypto Winter may send orange coin to $11,000.
By press time, Bitcoin (BTC) is still failing to hold above the $30,000 support level; it is changing hands at $29,319 on major spot platfoms, down 3.29% in 24 hours.