Much has been made about Bitcoin's June 2021 death cross. The death cross is a technical indicator when the 50-day moving average crosses below the 200-day moving average on a chart. It is seen as an indicator of an upcoming bearish trend.
Let me make something clear: I am not bearish on the crypto space. I am a believer in digital currencies in the long-term. I have seen several tweets from people who are far more knowledgeable than me forecasting a so-called "crypto winter" later this year. While we have already seen a major sell-off from all-time highs earlier this year, things seem to have been going sideways overall since then.
But if we look at the charts we can see that many popular coins besides Bitcoin have already passed through a death cross. As I wrote about last week, Bitcoin Cash is one that has experienced this bearish technical indicator. You can see this happening on the charts when the purple line (50-day moving average) crosses below the blue line (200-day moving average):
Polkadot - Death Cross on 6/25/21
Stellar Lumens - Death Cross on 6/29/21
Cosmos - Death Cross on 6/26/21
Bitcoin - Death Cross on 6/17/21
As stated above, this is just a technical indicator. It is not a guarantee the price will continue to go down. Curiously, two other popular cryptos have avoided the cross of death thus far. I am watching to see what happens with:
Cardano
Ethereum
To me, the declining 50-day MA on Cardano and Ethereum could be indicative of an upcoming death cross. I am watching these two closely. Their RSI levels are smack-dab in the middle of oversold/overbought territory. It seems these two may continue to trade sideways for now. Of the few cryptocurrencies I follow closely, ADA and ETH have the strongest looking charts at the moment (in my opinion of course).
Hopefully soon I will be posting about the Golden Cross indicator on these cryptos soon, the opposite of a Death Cross where the 50-day MA crosses above the 200-day MA. I don't claim to know what will happen next, or even have the slightest idea of a prediction. But for now the indicators appear to be looking more bearish for the short-term. Let's hope it doesn't last too long. However, I'm taking it as an opportunity to accumulate what I can.
