 the death cross This term has been thrown around a lot lately since the Bitcoin crash today We're going to be speaking about exactly what is a death cross what a death cross would mean for Bitcoin and What does history tell us about Bitcoin and death crosses? You guys don't want to miss this video. Let's jump right in Hey, what's up Jay here and welcome to Bitcoin Daily bringing you guys the best tips tutorials and ideas to help you guys become profitable and successful Investors the goal of this channel is as always to empower you the people with the knowledge and resources to get up to that Next level so guys make sure to smash the like on this video if you enjoy it And if you're new here if it's your first time on the channel Don't forget to subscribe and turn on the notification belt. So first of all, what is the death cross? The death cross is a technical chart pattern indicating the potential for a major Sell-off the death cross appears on a chart when a stock's short-term moving average crosses below It's a long-term moving average the most common moving averages used to find the death cross is the 50 day and 200 day moving averages so the death cross is the opposite of the golden cross the golden cross is when the 50 day moving average Moves above the 200 day moving average. So there's a golden cross and a death cross one is bullish One is bearish now one thing to note and remember when dealing with things like moving averages and some of the other technical indicators is that most of these tools are Lagging indicators meaning that they're telling you what's already happened They're not telling you exactly what's happening and they do not tell you what's going to happen These indicators and these tools do not predict the future both death crosses and golden crosses do often produce False signals so you have to be aware of that now the next question is how has a death cross affected Bitcoin Previously before in its history when it's happened on the chart. So let's go ahead and take a look at that So to find the most recent death cross in the Bitcoin chart, we have to go back all the way to October 22nd of 2019 in October of 2019 you guys can see circled in red here We had a death cross what happened after we got this death cross here as you guys can see right there Once we got the death cross here from its highs here after the death cross. We dropped a total of 62% in the market that's 62% Indicated the bottom here and and you'll see that the that it happened during the pandemic of last year in March of 2020 and that took us back up to where where we eventually got the Golden cross right which was in May of 2020 and that's kind of where the entire bull run began After that right now. This is a perfect example of a false signal here where we had a Golden cross right where the 50 day went over the 200 day But then it went right back down and we continued down and then after that then we also we had the golden cross again And that time it played out But the first time it was a false signal you could also see the golden cross right here as well Before we took off all the way to the highs up here, which was around that $14,000 area in June of 2019 Before we started going down and where we had that correction of about 47% before we saw that death cross which led to then a correction of about 62% or so if we go a little bit further back to the 2017 and 18 bull run you can see here when we topped off and when we saw that Death cross now now what you'll notice if we look back really quick here at 2019 is that before after hitting the top before we saw the death cross it took a 124 days Okay, so that's a very important number to remember there 124 days now when we go back to 2017 when we hit that all-time high it took before we saw this death cross over here It took a hundred and three days right so that took a hundred and three days to see this death cross Before the death cross we went down as low as 70% After the death cross We ended up going as low as 60% so we had a 70% correction We went back up and then at that point once we saw once we the death cross showed up on the charts We had from the moment of the of the death cross. We had an additional 60% drop there in the market now we go back even further here, right? Let's go all the way back to 2013 and 14 right so 2013 was that previous Boardrun where we went to a high of about 11 or $1,200 here for Bitcoin So this was the previous boardrun before the 2017 boardrun and if you look here It looks a very very similar right we saw a topping over here And then we had a pullback of about 63% Where we did make some of it back, but then we just kind of grinded lower Eventually coming across that death cross between the all-time high at the time and the death cross it took a hundred and 28 days once we saw the death cross here after that we retraced another 63% So we had a 63% drop from the all-time high once we got the death cross we saw a Additional 63% drop now. What's interesting here about this? specific boardrun here is that during that same boardrun in 2013 we saw a very very similar price action here where we had a huge Run-up and then a huge Correction you can see this was a correction of 80% guys 80% correction imagine we saw that Instead of 60 we instead of the 50% we saw 80% correction. That's what happened back in 2013 And you can see we even went under this the 50-day moving average and we tested the 200-day moving average Before when it looked at the time like the death cross was going to happen But Bitcoin started moving back up and eventually it continued on up So there was no there was actually no death cross during this time which helped Bitcoin continue on its way up and if you want to take it even further to the first official boardrun for Bitcoin back in 2011 you can see here that we had a run-up to about 32 dollars before a Let's see about a 86% Correction and then that's when we saw the the death cross right here I forgot to circle it after the death cross we saw an additional 60% correction there. Alright, so now we know the theory behind the death cross we know exactly what it is and how it works and we've looked back on previous bull markets and bull cycles and seen How the death cross has affected the price of Bitcoin when it has happened in its history so the only thing left to do at this point is to see where we are currently how The death cross would affect Bitcoin and the current market cycle and where that could lead us to So before jumping into that make sure guys that you subscribe to the channel if you guys are new here make sure to turn on the notification bell and Of course, don't forget to smash that like button. Let's do it together guys on the count of three Let's go ahead and all of us like the video together one two three Boom All right, guys, so let's go ahead and take a look at where we currently are and how a death cross would affect the market overall So currently we've seen a drop of about 53% from the highs to the lows, right? Next you can see that since the all-time high. It's been about 49 days as of today Right, so that's another important number to keep in mind. Remember if you look up here These are the last three bull cycles Before once we got the all-time high and before the death cross happened This is how many days each of them took so it took a hundred and three day a hundred and twenty three days a hundred and twenty eight days a hundred and three days in a hundred and one days Okay So that's an important factor to remember there because that can give us an idea of how long it would take for For the for this current cycle if if we're seeing the same thing play out if we see a death cross play out It'll give it gives us an idea of how much time we have before that happens So on average we're talking about a hundred and fourteen days before it's seen that death cross that would put us right around August six if that were to happen Here right so that gives us a date of around August six so we have more or less an estimate of when that death cross would be if the averages come true and Then the next thing that we have to figure out is what is the drop that we can expect here So the average drop has been around that 55 percent range So if we go from where we currently are right now, let's say we have to kind of Guestimate where the price would be right so I would imagine that we'd be If if we saw that happen that scenario that means that we did not go above 42,000 So we'd probably be in the range that we are right now either in the same kind of range We might be closer to 40. We might be lower, you know So we have to kind of guesstimate from there Where we would be let's say just for this scenario that we would be at $40,000 right? Let's say we'd be at we'd be at 40 when the death cross happens and and we're getting a 55% drop guys this gives us about an estimated drop down to $18,000 so let's recap this right so on average The amount of times over every single bull cycle once we've hit the top To the point where the death cross happens has taken on average a hundred and fourteen days So if we put up the hundred and fourteen days that gives us a date of around August 6th On average the drop after the death cross has been around 55% So if we kind of guess where the price would be by August 6th And then we kind of draw, you know draw down 55% that gives us a Range around 18 to $20,000 So the overall total from the top that we would drop down if this scenario happened would be 72% now remember guys, this is just some a little bit of theory We're playing around with a lot of averages And we're just trying to give you and show you the case scenario of what could happen If if this played out because a lot of it a lot of people been talking about the death cross So we've been getting a lot of questions on about the death cross So we wanted to cover it in depth for you guys with History data, you know that backs up this information here So this does not mean it's going to happen is just if it were to happen This is kind of the numbers. This is kind of ballpark numbers where what we would expect Provided by the information that we have on on bitcoins past The data that we have from the past that Bitcoin has given given us through previous Bullish markets when it's hit a death cross now long term. We are still bullish We still think that there's a lot of reversal patterns out there that can spring the price up higher And that would invalidate this scenario for now, right? Alright guys, so thank you so much for watching this video I hope you guys enjoyed this remember that we still are bullish Bitcoin But we always like to give every side of the story We try to put the whole story together and give you guys as much Information as possible so that then you can make the best decision for yourself Depending what happens what scenario happens in the market if you guys have enjoyed this video Don't forget to smash that like button guys if you guys are new here Then subscribe to the channel and turn on the notification bell as we're working our way up to 10,000 subscribers I appreciate you guys for tuning in tomorrow. We will do a full Bitcoin market analysis on what's going on right now So thank you guys. I will see you on the next video as always peace and love