I spotted an interesting signal on the 3-day Bitcoin chart. The 50-day moving average crossed below the 200-day moving average on February 27, forming what is called a death cross. It is a pattern that historically does not bring good news to the market.



Since 2014, when this death cross pattern appears in bear markets, Bitcoin usually drops about 50% afterward. Analyst @alicharts has documented this behavior quite a bit. It’s not a guarantee of anything, but it’s a signal worth watching.

With BTC oscillating around 78.5K and the market still experiencing some volatility, this type of technical indicator tends to generate a lot of discussion. Some believe that the death cross is a serious warning, others see it as just one of many market signals. In any case, it’s good to be alert to these patterns when they appear.
BTC0,32%
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