Anonymous cryptocurrency trader and analyst who goes by @rektcapital on crypto Twitter, shares detailed analysis of how the “death cross” really affects BTC performance.
- Two Types of “Death Crosses” for Bitcoin (BTC)
- We are still too early for bitcoin (BTC) bottom
Trading giant Reckitt Capital has two hints that a “death cross” pattern could affect bitcoin (BTC) price performance and shared a warning to bulls that are a bit too bullish.
Two Types of “Death Crosses” for Bitcoin (BTC)
Rekt Capital compared the historical performance of bitcoin (BTC) prices in 2013-2021. He compared the performance of Bitcoin (BTC) after meeting the so-called “golden cross” and “death cross”.
#B T c Down -40% since death cross in early Jan ’22
History tells that whenever there is a death cross, #bitcoin feels deeply negative
Now that there’s one, what can we potentially expect?
Here’s a thread with my analysis about $BTC Death Cross:— Rect Capital (@rektcapital) 20 May 2022
These signals are recorded 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 crosses the 200 EMA. while a bearish death cross flashes when the 50 EMA crosses below the 200 EMA.
Historically, in 2013, 2017 and 2019, the bitcoin (BTC) death cross marked the middle of a bearish fall: the price fell equally before and after the death cross flashed.
At the same time, in 2020 and 2021, the Bitcoin (BTC) death cross marked a bottom; They triggered massive spikes.
According to Rekt Capital, based on “pre-death cross” performance, Bitcoin (BTC) is now following a 2013-2019-ish pattern.
We are still too early for bitcoin (BTC) bottom
Therefore, Bitcoin (BTC) may still drop significantly lower than it is currently. 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 of over $69,000, such a crypto winter orange coin could send in $11,000.
As of press time, bitcoin (BTC) has still failed to stay above the $30,000 support level; It is changing hands on the major spot platform at $29,319, down 3.29% in 24 hours.