Today at 8 pm EST we had the 2019 death cross. To better understand this event I will answer three questions:
What does it mean?
How will it affect the price of Bitcoin?
What to expect?
WHAT DOES IT MEAN?
When the price has been in such a fast decline it prompts the faster 50MA to cross the slow-moving 200MA. This also means that the asset -- which in this case is bitcoin -- has not been able to move above the 200MA for some time, and it has been too weak to recover thus prompting the 50MA to move down and create what is called a "Death Cross." It is called a death cross because traditionally nothing good happens after this event.
HOW WILL IT AFFECT PRICE?
One word; NEGATIVELY. The price will range and try to rally up to the 50MA just to be rejected and sent down deeper and deeper until we find a healthy buy zone. The healthy buy zone could be in the 4k area -- which is not in play yet. So let's relax and watch this play out this cash in hand. I personally have only 25% of my working capital in, I have been advising you all to do the same. Let's not rush to buy the next green X (buy zone) just yet.
WHAT TO EXPECT?
This can take a few months, the last death cross happened on March 31, 2018. The recovery was on April 25th, 2019. That's a long frigging time.
I would recommend not to put any money in as of right now until we have clarity. I will explain what clarity means and when to dive back in on the next few posts.
What does it mean?
How will it affect the price of Bitcoin?
What to expect?
WHAT DOES IT MEAN?
When the price has been in such a fast decline it prompts the faster 50MA to cross the slow-moving 200MA. This also means that the asset -- which in this case is bitcoin -- has not been able to move above the 200MA for some time, and it has been too weak to recover thus prompting the 50MA to move down and create what is called a "Death Cross." It is called a death cross because traditionally nothing good happens after this event.
HOW WILL IT AFFECT PRICE?
One word; NEGATIVELY. The price will range and try to rally up to the 50MA just to be rejected and sent down deeper and deeper until we find a healthy buy zone. The healthy buy zone could be in the 4k area -- which is not in play yet. So let's relax and watch this play out this cash in hand. I personally have only 25% of my working capital in, I have been advising you all to do the same. Let's not rush to buy the next green X (buy zone) just yet.
WHAT TO EXPECT?
This can take a few months, the last death cross happened on March 31, 2018. The recovery was on April 25th, 2019. That's a long frigging time.
I would recommend not to put any money in as of right now until we have clarity. I will explain what clarity means and when to dive back in on the next few posts.
