Death Cross! This is one such topic that’s been discussed in a wide range today. But you might have come across questions like,
What is this death cross? How does it happen? How do you calculate it?
Then you’re at the right place. This article will help you understand all about death cross in a much simpler way
Death Cross is a technical measure indicating a more bearish trend to come.
Analysts use the term death cross to check & analyze the future of an Asset so that they can take better decisions on their next trade
Now let’s understand how to calculate this death cross and how it happens exactly.
Step 1: Open Trading View website
Step 2: In the search box, for example, search BTC/USDT, and a chart opens
Step 3: Now select the indicators option & search Moving Average (MA) and select MA twice
Step 4: Set the 1st MA as 50 days along with a colour & 2nd MA as 200 days with a different colour.
Now you can see that the asset’s average price over the last 50 day moving average falls below the 200-day moving average and the point where a cross or X shaped line forms, it’s called a death cross
FYI : Moving Average is a technical indicator used by analysts and investors to determine the average price of an asset
In Golden Cross the Red Line indicating 50 days MA goes above Blue Line indicating 200 days MA
Stage 1: The 50-day moving average is below the 200-day moving average
Stage 2: You can see the trend reverses and the 50-day moving average crosses above the 200-day moving average. This is the phase where Golden Cross occurs
Stage 3: The start of the bullish moment – 50-day moving average stays above the 200-day moving average indicating a Bullish trend
So by now, you have understood the difference between the death cross and the golden cross, wherein the major difference lies in the death cross being downtrend and the latter being uptrend.
But there are a few tips one must look into before considering the death cross and golden cross
No matter whether you decide to buy or sell, always research well before entering or exiting the market to have control over your profits or loss.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
A new filing has surfaced in the United States for an exchange-traded fund (ETF) linked…
Bitcoin has eased after touching a record $125,700, now trading near $121,000. The price movement…
Canary Capital, a crypto investment firm, has filed amended S-1 filings for spot Litecoin (LTC)…
Peter Brandt, a veteran trader, has cautioned a potential bearish outlook for XRP in the…
Bitcoin (BTC) price experienced a flash selloff on Tuesday after hitting its all-time high (ATH)…
Binance Coin (BNB) has possibly entered its parabolic phase. The large-cap altcoin, with a fully…