What is Death Cross in Crypto?
Death Cross is a technical indicator that indicates a potential start of a bearish trend in the cryptocurrency market. Death Cross occurs when a short-term moving average (usually the 50-day MA) crosses a long-term moving average (usually the 200-day MA) from top to bottom.
Main characteristics of Death Cross:
馃數 Sell Signal: Death Cross is considered a warning of a possible decline in the asset price, indicating the start of a bear market.
馃數 Bearish Trend Confirmation: When the MA 50 crosses below the MA 200, it indicates a weakening of short-term momentum compared to the long-term, which may suggest a bearish trend.
馃數 Importance of volumes: As with the Golden Cross, trading volumes are important to confirm the Death Cross. If volumes increase during the formation of the Death Cross, it reinforces the signal of a probable continuation of the downtrend.
