It has been just predicted the fact that Bitcoin bulls and bears are about to get wrecked by the death cross fakeout. Check out the latest reports about the matter below.
BTC bulls and bears new prediction
In a recent video update, crypto strategist Benjamin Cowen warns that Bitcoin (BTC) investors may be in for a surprise fakeout.
As Bitcoin’s halving cycle approaches, occurring every four years and cutting miners’ rewards in half, Cowen suggests that both bullish and bearish investors should be wary of a fake “death cross” during the pre-halving year of 2023.
This phenomenon has historically caused major losses for BTC traders, making it important to stay informed and cautious.
Cowen said the following:
“From pre-halving years, what normally happens, and I’ve said this many times, is that we wreck the bears and the bulls. We wreck both sides and that way, by the end of the year, we’re all sufficiently wrecked – whether you’re a bull, whether you’re a bear, it doesn’t really matter, everyone gets wrecked…”
He continued and opted this:
“Just looking at all three prior pre-halving years, that’s what usually happens. We wreck both sides, and that is why I think that this will ultimately fade into a lower high.”
It has been suggested by Cowen that BTC is in a situation where both sides are being negatively impacted. This is due to the prediction of a death cross, which can deceive traders and investors.
A death cross occurs when an asset’s 50-day moving average falls below its 200-day moving average. This indicates that the asset may be entering a more significant bear phase.
Typically, when an asset experiences a decline just before the death cross appears, people tend to sell because they believe that the death cross is an unfavorable sign.
However, this strategy often proves to be unwise because both golden and death crosses are lagging indicators. They are based on moving averages, which are lagging indicators themselves.
In the short term, when you observe a death cross or a golden cross, the opposite of what you expect often occurs.
According to a crypto strategist, it is common for the S&P 500 to experience a seasonal correction during pre-election years, which in turn causes Bitcoin to enter a downtrend for the remainder of the year, regardless of whether the stock market index rises or falls.
In fact, back in July, this phenomenon was discussed and it was noted that the S&P 500 typically undergoes a seasonal correction in August and September of the pre-election year. As of now, Bitcoin is trading at $27,031, reflecting a slight increase over the past 24 hours.
