What is Death Cross? Death cross term came into the cryptocurrency world in late 2017 and had everything to do with Bitcoin price action. At that time, Bitcoin had just recovered after plummeting by over 80% in the previous two months. As many were wondering whether the bear market was finally over, they started looking at technical indicators to see whether this was indeed the case or not. One of the most popular technical indicators among traders nowadays is one called death cross which has everything to do with Bitcoin price action. You can find many cryptocurrency exchanges online, like https://www.bitcoinera-no.com/.
In the cryptocurrency space, investors have adapted this concept to the SHIB market. While no formal indicators exist to define a SHIB death cross, it is widely accepted among crypto analysts that the formation is likely to occur when SHIB’s price falls below its 50-day moving average. Since the asset has been on an extraordinary bull run for most of 2021, this event could be an indicator of a major correction in the near future.
However, some investors are taking this potential decline as an opportunity. Many are seeing SHIB as a perfect replica of Bitcoin (BTC) in terms of its high volatility and large market capitalization. This means that those who can predict when a SHIB death cross will occur may be able to capitalize on it and make significant profits from any resulting market movements.
What Is a Death Cross?
A death cross is a technical chart pattern in which a security’s short-term moving average crosses below its long-term moving average. It’s often seen as a signal of impending doom for a security or asset and is used by traders as a signal to sell or get out of their positions.
The death cross pattern was first spotted in the stock market but has been adapted to cryptocurrencies such as Bitcoin and SHIB. The SHIB Death Cross occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA, creating a bearish signal. This indicates that short-term prices are trending lower than the longer-term averages, which suggests a downward trend in price.
The SHIB Death Cross is an important indicator for traders, as it can alert them to potential reversals in SHIB’s price. By anticipating these reversals, investors may be able to take advantage of selling opportunities or protect their investments from potential losses. In addition, the SHIB Death Cross can also be used to identify when there may be a break in SHIB’s price movement, allowing for the entry of new long positions at better levels.
What Does It Mean for Bitcoin?
The recent emergence of Shiba Inu (SHIB) cryptocurrency on the market has caused quite a stir. With its meme-inspired design and Elon Musk’s endorsement, it’s no surprise that investors have been taking notice. However, the recent SHIB death cross has also drawn attention to the digital asset and its similarities to Bitcoin.
What does a SHIB death cross mean? A death cross occurs when the 50-day moving average crosses below the 200-day moving average, indicating that the short-term trend is becoming bearish. This occurred recently with SHIB, causing investors to draw comparisons between it and Bitcoin, as both digital assets experienced a similar pattern during their respective bull runs.
So, what does this mean for Bitcoin? In short, not much. While it may be interesting to note that SHIB and Bitcoin are experiencing similar patterns, it’s important to remember that there are many differences between the two assets.
For starters, Bitcoin is much more established than SHIB, making it less volatile and less risky. Furthermore, its use cases are much more diverse than SHIB, as it’s accepted by a wide range of businesses and institutions.
Ultimately, while the SHIB death cross may serve as a cautionary tale for those investing in SHIB, it doesn’t necessarily have any bearing on Bitcoin. It’s always important to conduct thorough research before investing in any asset and remember to never invest more than you can afford to lose.
Conclusion
The SHIB death cross has certainly made it a perfect replica of Bitcoin. For many investors, this was the last piece of the puzzle that enabled them to feel more confident about investing in SHIB. The low price and potential upside are extremely attractive, and with the recent death cross, those bullish on the coin have been given another sign of a possible surge in value.
While there is no guarantee that SHIB will continue to mirror Bitcoin’s movements, it is certainly a promising asset to consider. Investors should continue to do their own research and make sure they understand the risks involved before taking any positions. Ultimately, SHIB could prove to be a great addition to any investor’s portfolio.
Originally posted 2023-01-14 10:28:00.
