Bitcoin has died over 473 times according to media headlines, yet it always rises from the grave and rallies onward. A resurrection of the crypto market could be happening right now, as Bitcoin price has reclaimed the dreaded “death cross” on the 1-week timeframe.
Here’s a closer look at the moving average crossover that had the whole crypto market in fear, and what might happen now that it has been reclaimed.
Bitcoin Price Pushes Above Record-Setting Death Cross Signal
The website 99 Bitcoins keeps track of each time the media mentions that BTC has died. Each mention must be “explicit about the fact that Bitcoin is or will be worthless” and the content must be “produced by a person with a notable following or a site with substantial traffic.” No small fries, or ambiguous “maybe Bitcoin could be dead” declarations are allowed.
The result is more 473 times BTC has been declared deceased. Every single time, Bitcoin has proven them wrong. But for the first time in history, crypto bears had a reason to be so negative. For the first time in the entire history of BTCUSD price charts, the top cryptocurrency by market cap formed a “death cross” of the 50-week and 200-week moving averages.
A death cross forms when the shorter moving average passes through the longer moving average from above. A golden cross forms when the same signal happens from below. Each signal tells investors that the long-term trend could be changing.
The death cross itself is bearish, which gave bearish crypto traders plenty of reason to stay short. But with Bitcoin now above it, a decision will have to be made: cover now, or stay the course with added risk of being stopped out higher.
Reclaiming Crossover Leaves Crypto Bears With Little Left To Cling To
With the death cross a proven bearish signal, the first-ever death cross forming in Bitcoin was another dangerous blow to already negative sentiment. BTCUSD 1W price charts are now above the two moving averages, potentially causing bearish traders to sweat.
The death cross on the weekly, and BTCUSD below the 50-month moving average were two of bears’ best arguments for why a new bull trend was nowhere in sight. Bitcoin also reclaimed the key moving average on the higher timeframe as well.
Finally, daily price charts have confirmed golden cross, and the longer-term moving average is beginning to turn upward – another bullish signal. Across the various timeframes there are still conflicting signals. However, with each moving average reclaimed, the bearish narrative is rapidly weakening.
Is Bitcoin officially back from the dead now that it is above the weekly death cross?
Destroying #Bitcoin bears' best argument in one candle. Priceless.
The short-covering rally is going to be wild. I don't think it has quite started yet. pic.twitter.com/n2WfX13htB
— Tony "The Bull" (@tonythebullBTC) March 17, 2023
