Bitcoin Death Cross Is Staring Down Bulls After a Painful Retreat

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    • #468996
      eridani
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      • Total Posts: 11,935

      https://www.bloomberg.com/news/articles/2022-01-11/bitcoin-death-cross-is-staring-down-bulls-after-painful-retreat

      Known as a death cross, the measure shows up whenever an asset’s average price over the last 50 days drops below that of its 200-day moving average, an indication that its momentum is headed downward. And though it hasn’t occurred yet for Bitcoin, it looks to be on course to hit it later this week, according to Mati Greenspan, founder of Quantum Economics.

      Bitcoin avoiding forming the death cross for another day, rising 2.6% to around $42,813 as of 2:44 p.m. in New York. Before Tuesday, it had notched only three up days since the new year started. Ether, the second-largest digital token by market value, also looks to be on track to form a death cross, though it also traded higher to around $3,233 on Tuesday.

      Prior to Tuesday’s reprieve, cryptocurrencies had been under pressure in recent weeks, with Bitcoin dropping more than 30% since reaching a high of almost $69,000 in November. The latest stretch lower for digital assets is happening as odds rise that policy makers could commence a series of rate hikes as soon as March — and that’s just one of several steps they’re set to take in removing liquidity. In such an environment, speculative investments lose their luster. Only 5% of JPMorgan Chase & Co. clients now foresee Bitcoin hitting $100,000 by the end of 2022.

      The indicator is supposed to be bearish but Bitcoin’s track record around death-cross formations remains murky. It marked the grim-sounding pattern in June of last year, and another one in March 2020 proved no impediment to gains as it turned higher and formed a golden cross (when the pattern is reversed) two months later. But a death cross in November 2019 saw the coin trading lower one month later.

      Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction

    • #468999
      Scott Crowder
      Participant
      • Total Posts: 923

      for bitcoin investors if it went back to being more volatile.

      It’s been stagnant for a while now.

      "The possessions of the rich are stolen property." Pierre-Joseph Proudhon
      “The two greatest obstacles to democracy in the United States are, first, the widespread delusion among the poor that we have a democracy, and second, the chronic terror among the rich, lest we get it.” Edward Dowling
      "The poverty of our century is unlike that of any other. It is not, as poverty was before, the result of natural scarcity, but of a set of priorities imposed upon the rest of the world by the rich." John Berger

    • #469184
      snot
      Participant
      • Total Posts: 1,517

      So far, the only weapon they’ve got for the purpose is propaganda.

      Destruction is easy; creation is hard, but more interesting.

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