After the latest pump on Sunday 13 June 2021, there are many analysts who resort to the Bitcoin Death Cross to explain that the current bitcoin price trend is not bullish yet.
Since Sunday, in fact, the price of BTC has risen from $34,000 to $39,000, exceeding $40,000 during the last four days. Analysts, taking into account the ATH (All-Time High) of $64,000 already reached in mid-April, are giving their opinion on the matter.
Lark Davis, a crypto investor and YouTuber, pointed out that Bitcoin has failed to successfully close above the 200 EMA, and a bullish scenario may not yet be confirmed.
Following the price trend of BTC, today Davis also gave his opinion about the bitcoin death cross:
“Unless we get a big news event like Facebook announcing a billion dollar BTC buy, then we will get the bitcoin death cross this weekend. Don’t panic!”
In contrast, other analysts such as Rekt Capital advocate a different theory:
“BTC’s phenomenal recovery over the past few days means that a potential Death Cross has been pushed back to late July”.
Bitcoin death cross: what we are talking about
The death cross that experts are now referring to is nothing more than a lagging technical indicator that appears when price action has already been less than optimal, but if confirmed, could lead to further price declines.
Specifically, the death cross is formed when a faster period moving average (usually the 50-day simple moving average) crosses below the longer period moving average (usually the 200-day).
In other words, the death cross is of negative sentiment, meaning that the price is expected to fall. In fact, large institutional investors tend not to buy into a falling market until a bottom is confirmed. Because of this, buying dries up and investors holding positions rush to exit due to panic, exacerbating the decline.
Despite the still bearish trend, which does not see the “bulls” taking the lead in the crypto sector, other analysts this week have instead expressed positivity about the long-term price of BTC.
Only yesterday, Alex Mashinsky, said that thanks to the strong entry into the sector by Nigeria, Brazil and El Salvador, the price forecast for BTC is around $160,000 by the end of 2021.
Meanwhile, Jurrien Timmer, Director of Global Macro at Fidelity, made the point that from the $34,000 touched by BTC on 14 June, the price is now set to rise.