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Why Bitcoin Death Cross Fears Are Overblown – Buy BTC Now?

Buy BTC Bitcoin death cross
Buy BTC Bitcoin death cross

Leading the nascent industry to an eye-popping $2.5 trillion valuation in just twelve years, premier digital asset Bitcoin has struggled recently, losing about 50% of its mid-April ATH.

Other cryptocurrencies, altcoins, have not escaped this plunge, and the crypto market is now worth $1.4 trillion at the moment of writing. This continued decline has seen crypto skeptics point to the ominous ‘death cross’ trading pattern as evidence that the oldest crypto is due for a sell-off.

A death cross event occurs when the 50-day moving average (MA) trades below the 200-day MA support. There have been different perspectives on what this pattern portends for Bitcoin price. Some point to a major sell-off. But could it be an opportunity to buy BTC?

BTC Hodl Rising

Popular stock-to-flow (S2F) model creator Plan B tweeted about 2019 and 2020 BTC death cross occurrence, noting that this generally leads to a bear market.

Bitcoin may be forming a ‘death cross,’ but this is not deterring long-term focused investors.

According to Glassnode data, the supply held by long-term investors has risen from 11 million to 11.6 million in the past few weeks. This is according to its “hodler net position change,” which tracks buying and selling of digital asset owners.

Analysts point to a similar 2019 death cross event which saw BTC rise 40% from $7,000 to $10,500.

Bitcoin may be trading below the $35K mark, but growing institutional adoption means Bitcoin is not yet done.

 

bitcoin price chart June 21

Instead, the price drop would see more institutional investments from corporate bodies and crypto whales providing strong support at the $30,000 price mark. This is because many institutional investors view Bitcoin as a form of digital gold in preserving value across a period. More countries are also getting in on the action to buy BTC.

El Salvador became the first when it adopted BTC as a legal tender. Other Latin American nations, including Argentina, Paraguay, Panama, Brazil, are also considering adopting Bitcoin as a hedge against inflation and to attract tech entrepreneurship.

China Crypto Mining Ban Herald Green BTC Mining

Bitcoin and the broader crypto market have experienced a checkered year. From seeing a growing frenzy by retail and institutional investors to own digital assets to outright ban, BTC has been at the center of a brimming storm.

China has banned the mining of BTC in its territory. This has left about 50% of the world’s global hash rate stranded.

China has called out BTC due to its energy-guzzling proof-of-work (PoW), but the ban could help the industry transition to renewable energy. According to a Coinshares report, about 74% of Bitcoin mining is done with renewables.

This means China’s ban is just a short-term shock on BTC price action and could help in actually creating a greener, decentralized means of mining the digital gold.

A Bitcoin Death Cross may sound like a death knell to crypto newbies, but this may be a good time to buy BTC.

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