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On June 19, the Bitcoin market witnessed the dreaded Death Cross, much sooner than predicted. However, the anticipated consequences did not materialise. In fact, when compared to other Death Crosses, this one failed to leave an impression. However, the formation of a Golden Cross, which has traditionally resulted in a Bitcoin rise, is visible.
The Death Cross
The whole crypto world feared this occurrence since, historically, every death cross (DC) has resulted in a catastrophic decline. Instances from previous DCs demonstrate how much Bitcoin loses in such an incident.
The figures below demonstrate how, in 2014, BTC experienced its first significant DC. During that time, the coin fell by 71.53 percent. Bitcoin had its first big Golden Cross (GC) at the end of the next year, launching the coin on a bull run. Similarly, the 2018 death cross dragged the currency down by 65.11 percent, and almost a year later, the coin had its GC, which led to a resurgence.
However, the coin exhibited a sequence of DC and GC from October 2019 to June 2020. These recurring occurrences did not have the same influence on Bitcoin’s price as they usually do (The drop around March 2020 occurred because of the Covid-19 panic sell-off). These are referred to be false crosses or trend meaningless crosses. These occurrences take place in a relatively short period of time, which is rare for such major events.
The time gap between these DCs and GCs was just 60 and 69 days, respectively. As a result, their effects are likewise short-term, which is why they aren’t as significant as a DC or GC.
The Golden Cross
In the most recent DC – June 19, this Death Cross occurred earlier than expected. Historically, a DC occurs between 107 and 149 days following the first crash. In this case, the initial crash occurred in May, when Bitcoin fell by 53.78 percent. This puts the projected DC timeline somewhere between late July and early September. The Death Cross, on the other hand, happened in less than 60 days.
This is why the present DC seems to be a fake DC or a meaningless trend cross. As a result, the market will soon have a comparable Golden Cross. Despite the fact that it is a fake GC, the event would boost the currency above and maybe back to pre-crash values. Based on previous false GC timeframes, the next one should occur in around 60-69 days after June 19. This sets the projected period somewhere between late July and early September, which is exactly when the DC was scheduled to take place.
Having said that, in order for the GC to occur, Bitcoin’s price must remain above $29,000, as this is the crucial support level. The recent Death Cross will be nullified as long as the king coin remains above that level, and the next Golden Cross will take place.