Analysts who observe bitcoin coined the term “death cross” to describe when a short-term average trend line changes to a long-term average trend line that signals a change in price dynamics.
The most important highlights are the combination of 50 days and 200 days.
Over the weekend, bitcoin’s price fell below its 200-day moving average.
The plunge follows bitcoin, which has lost more than 20% in the past six days, losing half of its April high of nearly $65,000.
China’s growing crackdown on bitcoin mining has shaken the market in the first place.
Crucially for bitcoin, it would remain above and below its May 19 low of $30,066, reinforcing the negative signal of the so-called death cross.
The last death cross on the bitcoin chart occurred in March 2020, after the cryptocurrency plunged nearly 60% in six days, and shortly before triggering a rally of more than 1,000% the following year.
For more information, read the original story in Reuters.