A popular crypto analyst is revealing what history says will happen to leading digital asset Bitcoin (BTC) after it once again reaches its death cross.<\/p>\n
In a new video update, pseudonymous analyst Rekt Capital tells his 44,000 YouTube subscribers BTC has recently hit its death cross once again, meaning its short-term moving average has dipped below its long-term moving average.<\/p>\n
According to the analyst, large price drops historically tend to happen both before and after BTC reaches the death cross.<\/p>\n
A death cross is what precedes macro downtrends and if we look about across cycles, minus 73% is the downside we see over the time, over a period of 135 days before that first death cross happened, and this is in 2014, late 2013. <\/p>\n
The trader goes on to mention that a similar pattern formulates every time Bitcoin has reached its death cross over the years, except in 2021.<\/p>\n
According to Rekt Capital, this deviation didnt last long. BTCs latest death cross has it reforming the pattern.<\/p>\n
While the 2021 period was a deviation from death cross form and historical tendencies where the death cross was actually preceded a bottom and upside, in this current period, were actually seeing a return to form where death crosses actually precede further downside.<\/p>\n
However, the analyst says that even though there is historical precedent for a large drop, he doesnt necessarily believe BTC will see such a massive downswing and gives a price target for investors to keep an eye on.<\/p>\n
We cant really say that this is a guarantee, that were going to see minus 70% because that would happen in the 2013 cycle. Were in the 2022 cycle, almost 10 years ahead. Could we really see such a volatile retracement of 70%? <\/p>\n
It seems unlikely but its all about watching out for the $22,000 price region.<\/p>\n
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Featured Image: Shutterstock\/Leonid studio\/Sensvector<\/p>\n
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