Crypto Analyst Explains What Could Happen As Bitcoin Reaches ‘Death Cross’

A widely followed crypto analyst, knows as Rekt Capital looks into what historically happens to Bitcoin (BTC) after it once again reaches its “death cross.”

The analyst shared with the 44K subscribers to his YouTube channel that BTC has recently hit its death cross once again. In other words BTC’s short-term moving average has gone below its long-term moving average.

Rekt Capital notes that large price drops historically usually to happen both before and after BTC reaches the death cross.

“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.”

He also notes that a similar pattern forms every time Bitcoin has reached its death cross over the years, except last year.

Rekt Capital, however, points out that this deviation didn’t last long.

“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, we’re actually seeing a return to form where death crosses actually precede further downside.”

According to the crypto analyst, even though there is historical precedent for a large drop, it doesn’t necessarily mean that BTC will see such a massive fall and gives a price target for investors.

”We can’t really say that this is a guarantee, that we’re going to see minus 70% because that would happen in the 2013 cycle. We’re in the 2022 cycle, almost 10 years ahead. Could we really see such a volatile retracement of 70%?

It seems unlikely… but it’s all about watching out for the $22,000 price region.”