On October 25, 2019, a Death Cross occurred on Bitcoin’s daily chart, and it brought Bitcoin down from $10,000 to as low as $6,500, marking a drop of almost 35%.

BTC/USD Daily Chart | Source: TradingView

How to use Death Cross in trading coins?

The MA pair that financial investors on Wall Street often use is MA 50 and MA 200. If MA 50 cuts down to MA 200 (Death Cross signal), analysts often think that the market will be deeply corrected. Note that this downtrend needs more volume support. If the price is falling and the volume is increasing, it is a sign of a very clear downtrend. In these periods, if you are holding coins, you should cut your losses, and wait for a buy signal area such as static support and resistance, or use tools such as RSI, MACD, GMMA, Fibonaci… , the more effective way is that you should combine the tools together to give a more reliable signal.

For example, the RSI indicator gives us a buy signal when the price has entered the oversold area, or the RSI diverges where the price chart runs to a reliable static support level (a combination of pullback areas, or peaks or troughs). each other…) then our buy signal will be reliable and the possibility of loss will be less.

For day traders – day traders – a death cross can be created from shorter-term MAs, for example MA 5, MA 8… cut down compared to longer-term MAs like MA 21, MA 34…