What is Bitcoin's Death Cross

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Crypto

The crypto markets exhibited a sluggish pattern last week, with analysts making some dire predictions for the medium-term future.

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Investors are concerned about the rise in interest rates and general negative sentiments about the economy.

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Bitcoin is also suffering and is not ready for a bullish breakout.

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The major cryptocurrency sees a 'death cross' as chart patterns indicate that a short-term moving average has broken below a longer-term moving average

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For the first time in bitcoin's history, the cryptocurrency's 20-week moving average has fallen below the 200-week moving average.

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It denotes a death cross, which occurs when the slower moving average crosses the faster moving average, usually indicating a bearish market.

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In case you are not familiar, the moving average is simply a technical indicator that smooths price data by creating a continuously updated average price.

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They often form the basis for other technical indicators, such as moving average convergence divergence.

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Bitcoin often doesn't even reach close to its 200-week moving average, and the fact that the price does even that is a rare occurrence.

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Generally, when this level is reached, it is followed by a period of strong price movement.

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