Anonymous cryptocurrency trader and analyst who goes by @rektcapital on Crypto Twitter shares detailed analysis of how “Death Crosses” actually affect BTC performance
Trading veteran Rekt Capital outlined two ways the “Death Crosses” pattern could affect Bitcoin (BTC) price performance and shared a warning for bulls getting a little too excited.
Two types of “Death Crosses” for Bitcoin (BTC)
Rekt Capital compared the historic performance of Bitcoin (BTC) prices in 2013-2021. He compared the ways Bitcoin (BTC) performed after meeting the so-called “Golden Crosses” and “Death Crosses.”
These signals are recorded when the 50- and 200-day moving averages of the Bitcoin (BTC) price lines cross: a bullish golden cross appears when the 50 EMA crosses above the 200 EMA, while a bearish death cross flashes when the 50 EMA EMA falls below the 200 EMA.
Historically, in 2013, 2017 and 2019, the Bitcoin (BTC) Death Cross marked the middle of the recession: the price dropped equally before the Death Cross flashed and after it.
Meanwhile, in 2020 and 2021, Bitcoin (BTC) Death Crosses were marking lows; they triggered massive spikes.
According to Rekt Capital, based on “pre-Death Cross” performance, Bitcoin (BTC) is following the 2013-2019-ish pattern now.
We are still too early for the Bitcoin (BTC) bottom
As such, Bitcoin (BTC) may still drop much lower than it currently is. Based on past performance, an analyst would not be surprised by corrections of -55%, -65%, -71% and even -84% from today’s levels.
Given the previous Bitcoin (BTC) peak over $69,000, such a Crypto Winter may send orange coin to $11,000.
At press time, Bitcoin (BTC) still fails to hold above the $30,000 support level; it changed hands at $29,319 on major spot platforms, down 3.29% in 24 hours.
