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Here we go ,
I want to talk with yours about Death Cross.
Defination,
Indicates a major trend reversal in a stock and index. It allows traders to see long and short-term trends and predict whether prices will enter a bearish phase. How about death cross stages?
Step 1 ,
The buying of the investment vehicle should decrease and the rise should end. Afterwards, the number of sales people should gain the upper hand in the market and reduce the price.
Step 2 ,
It occurs as a result of the short-term average falling below the long-term average. The 50-day moving average falls below the 200-day moving average and retraces to the Death Cross point. The fall of the 50-day average initiates a long-term decline in the market.
Step 3 ,
The downward price decline accelerates and we can assume that there is actually a death cross here.
When we look Our Chart ,
I examined a death cross of BTC-USDT formed 19 November. Orange circle , As you can see on the chart on July 19 Nov, the 50 -day bitcoin average cuts the 200-day average from up . At this stage, we see that the BTC-USDT value has decreased with the high selling. The Death cross Intersection pattern increases the selling pressure. In this case, the share price may remain below the expected for a month to a year.
Conclusion,
With the Death Cross, it is predicted that the investment vehicle will be in a downward position in the long run. But if the investment tool breaks the decline in the short term and starts to rise again, the Death Cross may not be realized. It is necessary to look at the trading volume of the Death Cross. If there is a high transaction volume, the transaction is reliable. High trading volume indicates that investors are selling.
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