None Bitcoin has charted a so-called death cross with recent the drop to $7,400. The bearish cross is a result of the 47 percent slide from the 2019 high of $33,800 and as such is a lagging indicator.
None Historical data shows BTC tends to bottom out after death cross.
None The cryptocurrency has picked up a bid at press time, but is yet to invalidate the bearish case with a move above the Sept. 30 low of $7,714 for the Bitcoins in circulation.
To put it another way, the death cross is the product of the 47 percent slide from the $13,880 low. After all, the 50 - day MA responds to the data that is at least 2.5 months old and the 200-day MA has an effect on 6.5 month old data.
BTC topped out at $13,880 on June 26 and fell back to $9,000 in mid-July. However, the 50 Day MA continued to rise and topped out in August 7, 6 weeks after BTC was at $13,800.
All-in-all, it seems safe to conclude that the death cross is a bearish indicator and happens when most of the correction has already taken place, as received from the popular trader CryptoTutor on 31 March 2018 at the confirmation of the lagging cross.
The latest bear cross poses the same threat, as prices have already fallen more than 45 percent. In fact, BTC shows signs of life after confirmation of the death cross.
At press time, BTC is changing hands on Bitstamp at $7,600, having picked up a bid near $7,393 earlier today. That said, it is still too early to call a bullish reversal.