A “death cross” appeared on the three-day Bitcoin chart. Investors often perceive it as a sign that a bull market is slowing or ending.
However, the death cross is an unreliable indicator. Moving averages take into account historical data, and therefore, the longer the life of the moving average, the further it lags behind the price.
Since October 2019, the death cross has appeared on the Bitcoin chart at least three times. Thus, the death crosses observed in June last year, late March 2020 and October 2019 were bear traps or false signals that marked major price lows. The consolidation observed after the death cross in mid-June has resolved with a new bullish move.
Moving average crossovers are unreliable as independent indicators. And the cryptocurrency market has recently been affected by several negative factors.
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