Should We Care About the Bitcoin Death Cross? 

For the first time ever, the 50-week moving average has crossed below the 200 week moving average. This shorter 50 period average crossing under the longer 200 period average is called a “Death Cross.”  Should we care, and what are the implications? 

First off, keep in mind that this is a TRAILING indicator; it’s using data from the last 50 to 200 weeks. The 2022 Bear was certainly brutal, with the FTX dessert to top it off….but all of that is in the past now. Humans tend to trade the past, markets deal in the future. 

Another potential factor in the recent death cross is the recent rise in interest rates. Higher interest rates can put downward pressure on asset prices, as investors seek out higher yielding investments. Additionally, the recent market pullback has been driven in part by concerns about inflation, which can also be a factor in a decline in the price of Bitcoin and other cryptocurrencies. Keep in mind, however, that the Fed is just about done raising rates, or at least the bulk of the rate hikes have already occurred. In any case, we’re closer to the END of the cycle than the beginning of it. 

Notice also that the green 200 sma is still RISING. That represents the “mean” of the price action is still on the rise. Now when that average starts to fall, that might be cause for more concern. 

Don’t let this newbie retail FUD indicator spook you out.