Bitcoin Back From The Dead As Price Moves Above ‘Death Cross’
Bitcoin has died over 473 times according to media headlines, but it always rises from the grave and keeps rallying. A crypto market resurgence may be happening right now, as the Bitcoin price has regained the dreaded “death cross” in a one-week time frame.
Here’s a closer look at the moving average crossover that scared the entire crypto market, and what might happen now that it’s been recovered.
Bitcoin price moves above record-setting death cross signal
The website 99 Bitcoins keeps track of every media mention that BTC has died. Each mention must be “explicit about the fact that Bitcoin is or will be worthless,” and the content must be “produced by a person with a significant following or a website with significant traffic.” No small fries or ambiguous “maybe Bitcoin may be dead” statements allowed.
The result is more 473 times BTC has been declared dead. Every single time, Bitcoin has proven them wrong. But for the first time in history, crypto bears had a reason to be so negative. For the first time in the entire history of BTCUSD price charts, the top cryptocurrency by market capitalization formed a “death cross” of the 50-week and 200-week moving averages.
A death cross is formed when the shorter moving average crosses the longer moving average from above. A golden cross is formed when the same signal occurs from below. Each signal tells investors that the long-term trend may be changing.
The death cross itself is bearish, which gave bearish crypto traders plenty of reasons to stay short. But with Bitcoin now over, a decision must be made: cover now, or stay the course with the increased risk of being stopped higher.
Bitcoin is now back above the dreaded death cross | BTCUSD on TradingView.com
Recovering Crossover leaves Crypto bears with little left to cling to
With the death cross as a proven bearish signal, the first death cross formed in Bitcoin was another dangerous blow to already negative sentiment. BTCUSD 1W price charts are now above the two moving averages, potentially making bearish traders sweat.
The death cross on the weekly, and BTCUSD below the 50-month moving average were two of the bears’ best arguments for why a new bull trend was not in sight. Bitcoin also retook the key moving average on the higher time frame.
Finally, daily price charts have confirmed the golden cross and the long-term moving average is starting to turn upwards – another bullish signal. Across the different timeframes, there are still conflicting signals. But with each moving average regained, the bearish narrative quickly weakens.
Is Bitcoin officially back from the dead now that it’s over the weekly death cross?
Destroyer #Bitcoin the bears’ best argument in one light. Priceless.
The short-covering rally is going to be wild. I don’t think it’s fully started yet. pic.twitter.com/n2WfX13htB
— Tony “The Bull” (@tonythebullBTC) March 17, 2023
