I see many people speaking about "The Death Cross" that's just appearing on the Bitcoin chart. The Cross brings some fear with it, and I can't just understand why, since it's not really a concerning one. But let me explain.
A Death Cross is only strong and meaningful as long as Both SMA (50 & 200) are pointing to the downside - both SMA need to be declining. Many Traders do also Check the Volume. If the Volume is Rising with the Cross, its more likely Valid, if the Volume is declining it less likely.
Personally, I don't really use the Volume to Confirm. I check the direction of Both SMA.
Edit: In my Opinion the Death as well as the Golden-Cross are really really bad Indicators since they're lagging really hard.
Don't get fooled!
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@Cryptogreen, Glad it is. Thank you for your Comment!
martinmarin00
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👌
FALLING-CANDLES
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you also may want to consider we just came off a new ath at 69 so...wouldnt a more extreme low seem reasonable since we had such an extreme high ???
blauersamt
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@FALLING-CANDLES, This is a really good point and I couldn't agree more. The point of this post was to explain how to recognize a, more or less, valid cross. Of course, it is important to keep an eye on the whole market, especially the overriding trend.
FALLING-CANDLES
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i think you should look at the 100ma too
blauersamt
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@FALLING-CANDLES, I guess you mean 100 & 30sma right? As mentioned in my post, I don't really like the Death/Golden Crosses, they are terrible indicators. But I will keep an eye on the 100/30sma. Thank that you mentioned it.