Death Cross fails to defeat Bitcoin
Cryptocurrency prices are recovering today after Bitcoin’s ‘Death Cross’ failed to crash prices over the weekend.
In true crypto style, Bitcoin managed to hold its head above this year’s lows and register some recovery.
After dancing with the Death Cross, Bitcoin dropped to a low of just over $6,500 on Sunday.
Many feared devastating loses may have been in-store, with prices potentially dropping below Feb lows of $6000.
Values are showing a healthy recovery on Monday though.
The outlook is now far more positive with the majority of the top 100 cryptocurrencies now in the green again.
Bitcoin is trading just over $7,000 at time of press, according to the Coin Thud live price charts.
What is a “Death Cross”?
Cryptocurrency investors around the globe were waiting with baited breath as Bitcoin approached the so-called “Death Cross.”
Put simply; a Death Cross occurs when a stock’s 50-day MA (moving average) crosses over its 200-day MA.
Traditionally, this is usually followed by a capitulation in the stock causing prices to plummet.
And as we know, when Bitcoin falls, it takes most other cryptos with it.
This isn’t the first time Bitcoin has diced with the Death Cross, however.
It has been close to tempting fate on several previous occasions but has somehow bounced back every time, against all the odds.
The leading cryptocurrency’s current recovery is more-or-less in line with these historical patterns.
Every time the relative strength index (RSI) falls below 30.00, Bitcoin tends to recover and regain poise quickly.
Is Bitcoin recovering?
The cryptocurrency market took a significant hit last week.
All major digital assets lost significant portions of their market cap in a short space of time.
The market is continually fending off regulation fears and news of security breaches.
Traders are remaining on the sidelines, adding to the feeling of unease and driving prices down.
In the first quarter of 2018, the total value for all cryptocurrencies has dropped by around $40 billion.
This downward trend looks to be reversing, however.
If Bitcoin makes a break above $7,100, this could spark a rally to $7,600.
Should this upward trend continue, then further gains could be made.
Expect the unexpected
Bitcoin has always come out on top when coming face-to-face with the Death Cross.
In September 2017, values plummeted with pundits claiming Bitcoin was finished, causing a mass sell-off.
Shortly after, Bitcoin famously rallied to double its value in just one week.
By December, it had skyrocketed to the record highs of close to $20,000.
In the coming weeks, it is unwise to rule out Bitcoin.
It could be likely that Bitcoin is on the rise again.