After the price of Bitcoin fell from its all-time high of $ 69,000, it was unable to recover. The price has since stayed below $ 50,000 as the breakout continues to appear to be rejected. And this has pushed the 20-day EMA almost near the 200-day EMA. If the 20-day EMA cuts off the 200-day EMA from above, the Bitcoin Death Cross will take place again. So this could create negative market sentiment that could extend this correction further.
Attention must be paid to Bitcoin’s death cross
The last time the Death Cross happened after the May crash, we hit a low of $ 28,000. I’m not saying we’re going to get back to $ 30,000, but it’s a possibility that doesn’t get completely out of hand. More importantly, the correction could continue and we could consider $ 40,000 to $ 42,000 as an important level. This has even happened in previous bull runs when the price plummeted from $ 8,000 to $ 4,000 after the Death Cross.
Image source: Webul
The death cross is a clear example of a transitory bear market as the price of Bitcoin falls below the long-term price average. Combined with the current regulatory landscape, all of this could pose a major problem for Bitcoin. Russia has tried to ban cryptocurrencies as proposed by the Governor of the Bank of Russia. And then we have India, where the regulatory approach is very unclear. So if the timings are wrong, the market could simply collapse.
What should i do?
As an investor in the crypto space, it is important to be prepared for all kinds of crashes. These are the opportunities that you don’t want to miss. My approach would be to keep funds on hand on whatever platform you use and make sure your holdings have DCA whenever you see an opportunity. Note that this is not financial advice, but I think most of us know that the best way to invest is to calculate the average dollar cost.
Don’t panic and just HODL! If you are thinking about the timing of the market this would not be a great choice in my opinion. So what do you think of the Bitcoin Death Cross? And do you think if we crash we will stay over $ 40,000? Let us know in the comments below. If you found our content informative, like it and share it with your friends.
Also read: Bank of Russia could restrict crypto investments
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