Prominent crypto trader Tony “The Bull” hinted that Bitcoin is on the verge of forming a “Death Cross,” a signal that often worries traders. This pattern occurs when the 50-day moving average drops below the 200-day moving average, often seen as a bearish sign. However, history shows that not every Death Cross leads to a major price drop.
Tony “The Bull” highlighted that Bitcoin has experienced multiple Death Crosses and Golden Crosses over the years. A Golden Cross happens when the 50-day moving average moves above the 200-day moving average, signaling an uptrend.
Since the 2022 bear market bottom, Bitcoin has seen three Golden Crosses and two Death Crosses. Meanwhile, the first Golden Cross after the FTX collapse appeared when Bitcoin was around $21,000, leading to a strong uptrend. The trend remained bullish until a Death Cross in September 2023 at $25,000, but this turned out to be a false signal.
Shortly after, Bitcoin formed another Golden Cross at $35,000, triggering a new rally.
By August 2024, another Death Cross appeared when Bitcoin was at $61,000. Despite concerns, Bitcoin continued to rise, proving that Death Crosses are not always reliable bearish indicators.
Tony “The Bull” pointed out that while Golden Crosses have historically signaled strong uptrends, Death Crosses have been less reliable.
In some cases, such as during the 2022 bear market, a Death Cross lasted an entire year and led to a 60% price drop. However, in other instances, they resulted in only short-term corrections before Bitcoin resumed its uptrend.
Now, the big question is whether this upcoming Death Cross will confirm a lasting downtrend or be another false signal. Since Bitcoin has already seen two false Death Crosses recently, traders are divided.
As of now, Bitcoin is trading around $81,897, reflecting a drop of 6% in the last 24 hours, with a market cap hitting $1.7 trillion.
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