Descending triangle with a Death Cross or a trend reversal?
This is interesting, EMA50 just crossed below EMA200 recently making a death cross, and a descending triangle forming.
Bitcoin is trading sideways for 44 days now, with no certain trend direction. And with a recently formed death cross, it looks bearish.
What is a death cross?
A death cross is a chart pattern in which a short-term moving average crosses below a long-term moving average. For example, the 50-day moving average crosses below the 200-day moving average. As a result, a death cross is generally seen as a bearish indicator.
For an upward move, the price needs to break the descending triangle with good buying volume. MACD is trying to recover and come up from the negative territory. With good buying volume, and if the price can break the descending triangle and make a new high, there might be a reversal, and invalidation of the death cross might occur.
What do you think about it? Share in comments
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Bitcoin is trading sideways for 44 days now, with no certain trend direction. And with a recently formed death cross, it looks bearish.
What is a death cross?
A death cross is a chart pattern in which a short-term moving average crosses below a long-term moving average. For example, the 50-day moving average crosses below the 200-day moving average. As a result, a death cross is generally seen as a bearish indicator.
For an upward move, the price needs to break the descending triangle with good buying volume. MACD is trying to recover and come up from the negative territory. With good buying volume, and if the price can break the descending triangle and make a new high, there might be a reversal, and invalidation of the death cross might occur.
What do you think about it? Share in comments
For more trading ideas follow us. Visit Tuned to learn algorithmic trading. Design your trading strategies in our terminal and paper trade, backtest and live trade on your favorite crypto trading exchanges.
Happy Trading
Comment:
This idea is working very well till now. BTC is trading within the descending triangle. We will see what happens in a week's time.
