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Bitcoin Price Analysis: How Spot Golden or Death Cross Using Simple Moving Averages

November 16, 2019 at 4:22 PM | By Jit Sutradhar Markets

Understanding of short-term and long-term average moving (MA) is important for trading strategies, both for cryptocurrency or traditional assets.

Two rare but powerful signal that occurs when a merchant looking for short term and long term MA cross.

On the upside, that golden cross, and, on the downside, it is called death cross.

Gold and the death of the cross has been predicted many centuries before the worst economic downturn; for example, predicted traffic deaths in 1929, 1938, 1974 and 2008 bear market.

Importantly, they underscored the primary trend, allowing traders to navigate the chaotic waters of this bitcoin (BTC) extreme intraday and daily price volatility.

Golden cross

Golden cross

Golden cross occurs when the short-term MA crosses over the long term to the upside, signaling to traders to expect a strong bullish upward movement in the price of these assets.

There are two main requirements for a golden cross with the first end to the sharp downtrend due to fatigue seller, which means that the pressure of sellers in the market have eased. The second requirement is for short-term MA to rise above its long-term, usually 50-period and 100-period MA.

As seen marked in green, golden cross on the daily chart appears to BTC in March, indicating a strong upward movement away from the low $ 3122, witnessed by December 15, 2018.

Starting on March 12, the price rose as much as 260 percent, from $ 3859 to near $ 14,000 by June 26.

The golden cross is best used to analyze the long time frame compared with graphs monthly, weekly and daily.

Death cross

Death cross

Conversely, a cross of death were made by the buyer fatigue long-term, and short-term assets MA MA crossing below the long-term, usually 50- and 200-period average.

On March 30, 2018, BTC shows a larger bearish condition when the 50-day MA crosses below the 200-day MA, presaging a 54 percent drop in value from $ 6850 down to $ 3,122 by the 15-Des

As with the golden cross, the cross of the best death was identified using a longer time frame, such trends will need to be confirmed by not reversing the next day.

They are not always perfect, but to identify and take advantage of the death of the cross with gold and other indicators can be very valuable steering, helping you to navigate the muddy waters of the most stable asset class in the world.

Golden cross image via Shutterstock; charts via TradingView

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

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