Bitcoin and ethereum the two largest cryptocurrencies by market cap are heading toward a narrow death cross-zone raising major concern for crypto-traders, will the crypto market stay calm ahead of the upcoming turbulence? will there be another major market pullback? crypto analysts have pointed out investors need not be drive-by these upcoming market uncertainties.
As of today, the total crypto market cap made an increase of over 3.77% recovering from a $1.9 trillion cap to mark a $2.08 trillion market cap, as both currencies are heading for a better price recovery since the beginning of 2022 the two major currencies have been dipping in price as bitcoin bottom below 40k.
Death cross
It's a term used in the stock market to describe a rare meeting of two points intersecting over a specific period of 50 and a 200 days price average, the meeting at a point is referred to as the death cross it mostly signals danger for traders as it imposes either market flip or pullback.
Technically expert lookout for these sudden market moves and stay prepared by closing their opened position.
The chart above shows BTC and ETH pairs against USDT pointed to the 50 and 200-day moving average with BTC lines almost crossing each other, although the BTC pair shows a more likely potential of crossing the intersection line, there will likely be a crossing in BTC pair in the subsequent week will this trigger a massive pullback for the leading pair?
In June 2021 BTC pair underwent a death cross this advent did have little impact on the price of BTC with a quick bottom in price followed by a quick market recovery, history tends to always repeat itself when it comes to the crypto market which means there might as well be a pullback when the death cross line crosses each other.
On June 21, Bitcoin’s 50-day average fell below its 200-day moving average, triggering a death cross signal and causing reason for concern to some investors. On Tuesday, its price briefly fell below $29,026, temporarily erasing its 2021 gains, before climbing back above $32,000. source
A death cross in the crypto market plays an insignificant role as this event barely affect the price of cryptocurrency with little price move when they occur as seen in the previous year although, with Fed interest cut down, there is high uncertainty amongst trader where market price will be heading in next few months.