Most of us were expecting the dip; Bitcoin was down by about 11% earlier today, and many altcoins were down along with it. It is not a surprise because most of us expected to see Bitcoin test the lower thirty thousands. Aside from the fact that there were several predictions by analysts with chats and historical facts to back up such predictions, many of us, simply by looking at the market movement and price action, we’re already gearing up and staking up our cash to accumulate more Bitcoin when the price dips again.
From the chart above, it is clear that Bitcoin is still in its accumulation phase as it has not dropped below the major support line. Regardless of the usual panicking and media manipulation, there is still no clear confirmation that we are currently in a bear market because, aside from the frequent price drop, things look good, and the fundamentals are still rising.
There was a lot of FUD this past week in the crypto space, from the fear of Tether collapsing to the upcoming Death Cross.
With the ongoing FUD, the market surprisingly held up throughout the entire weekend and eventually crashed yesterday.
A Death Cross happens when the 50-day moving average crosses below the 200-day moving average; when a Death Cross occurs, it is an indicator that there could still be a fifty percent drop in price. A Death Cross played out, but Bitcoin is still above the major support level of thirty thousand dollars on the bright side.
Even though the Death Cross played out, it does not guarantee that we are heading into a bear market.
Out of the 19 occurrences of the Death Cross this period, four out of the nineteen achieved the expected negative percent changes at 21%. On the other hand, fourteen out of the nineteen occurrences have proven the Golden Cross to be more reliable. It achieved the expected result of positive percent changes at 74%.
The Golden Cross is what we should be paying attention to; although the Death Cross is a major signal that we are headed towards the downtrend, market manipulation must be considered.
This is the first Death Cross of this year; the last Death Cross happened in March 2020. The 2020 Death Cross was one of the worst in history because we were already at the bottom of a bear market, prices had dropped drastically, and unfortunately, a Death Cross followed suit. The major reason why it was that bad is that the stock market crashed, there was an ongoing pandemic, and there was a lot of panic.
One good thing about the 2020 Death Cross was that it turned out to be a good buy signal, and one year after the Death Cross, most coins in the market have appreciated by over a thousand percent. The next few weeks will be very crucial from the look of things as it will determine if we will be headed to a bear market or on the rise.
