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July 14, 2025
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Cryptocurrencies
Educational
The «Death Cross» — the name alone sounds alarming, and that’s exactly why it grabs crypto traders’ attention. When a couple of key lines cross on the chart, the crypto community starts buzzing — some worry about a coming drop, others stay skeptical. The pattern tends to stir things up in the community and often ends up in the headlines as a possible red flag for the market. But is it really that straightforward?
In this article, we’ll take a closer look at how the Death Cross works in crypto trading, when it can be trusted, and when it might be misleading. You'll see how experienced traders interpret this pattern — and why the bigger market context matters just as much as the signal itself.
A Death Cross in crypto is a bearish signal that appears when the 50-day moving average crosses below the 200-day. It suggests the market has already started to cool off — prices are slipping, and investors are becoming more cautious. Many perceive this signal as a sign that the uptrend has ended, and a period of prolonged decline is beginning.
It is important to understand that the Death Cross is a lagging indicator. It does not predict a fall in advance but only confirms that the market has already started to move down. This is why it is not used alone but in combination with other signs — for example, an increase in trading volume or a breakout of key levels. This makes it easier to understand whether this is a temporary drawdown or the beginning of a real downtrend.
On the chart, Death Cross looks like an intersection of two lines in the shape of the letter X — when the short-term moving average (usually 50-day) falls below the long-term (usually 200-day). It is the intersection point that attracts the attention of traders: it signals that the recent price dynamics are giving way to a weaker, downward trend.
Visually, this signal resembles a Golden Cross — only in the opposite direction. If Golden indicates growth, then Death — a possible fall. The lines move smoothly, and the moment of intersection often occurs after prices have already begun to decline.
Below you can see how the Death Cross looks on the chart.
Although the pattern itself looks simple — the intersection of two moving averages — its behavior on the market is not always the same. Sometimes the signal confirms the beginning of a prolonged decline, and sometimes it turns out to be a false alarm. Below are two real cases from the crypto market: one confirmed the classic bearish development of events, and the other did not.
In January 2022, a classic Death Cross formed on the Bitcoin chart: the 50-day moving average crossed the 200-day from top to bottom. At that time, the BTC price had already begun to decline from the autumn peak ($69,000), and the pattern became another signal of deteriorating market sentiment.
Immediately after the crossover, Bitcoin continued to fall — over the next few months, the price fell below $20,000. This confirmed that the “death cross” in this case did indeed reflect the beginning of a deep bearish trend.
In July 2021, a Death Cross also appeared on the Ethereum chart. After a strong correction in the spring, the 50-day moving average fell below the 200-day, which looked like a potential confirmation of further declines.
However, the market behaved differently: already in August, ETH turned up, and by November it updated its historical maximum, rising above $4,800. Despite the technical signal, the bearish scenario did not materialize — the pattern turned out to be belated and ineffective in the conditions of changing market sentiment. The Death Cross can provide a useful signal, but it does not guarantee a fall on its own. It is a lagging indicator that works best when combined with other tools and the overall market picture.
The Death Cross does not provide clear recommendations for entering a trade, but it can be a useful guide when analyzing the market situation. To use this signal consciously, traders usually pay attention to the following points:
Confirmation by other indicators — trading volumes, RSI, MACD or a breakout of support levels can strengthen the signal.
General market context — after a long rise and negative news, the pattern works more often.
Timeframe — Death Cross is most commonly used on daily charts. On weekly charts, it can also appear and is typically seen as a signal of much longer-term trend shifts. However, on shorter timeframes — like 5-minute or hourly charts — this pattern tends to lose reliability and often reflects short-term volatility rather than a meaningful trend reversal.
Waiting for confirmation — instead of reacting immediately, many wait for the price to consolidate below key levels.
Accounting for volatility — in sharp but short-term drawdowns, the signal can be false, especially in a sideways market.
So, the Death Cross is best used as part of a comprehensive analysis, and not as the only decision point.
Both patterns reflect shifts in market momentum, but in completely opposite directions. To make it easier to understand how they differ, here’s a simple comparison table:
Feature | Golden Cross | Death Cross | |
|---|---|---|---|
What it means | Golden CrossBullish signal (market may go up) | Death CrossBearish signal (market may go down) | |
How it forms | Golden Cross50-day MA crosses above 200-day MA | Death Cross50-day MA crosses below 200-day MA | |
When it happens | Golden CrossAfter a downtrend, showing potential recovery | Death CrossAfter an uptrend, signaling possible reversal | |
Used by traders for | Golden CrossIdentifying buying opportunities | Death CrossSpotting when to sell or avoid long entries |
The Death Cross is one of the most discussed technical signals in the market, but it should not be taken as a universal indicator. It is more of a confirmation of an already emerging trend than an early warning. In some cases, it helps to recognize the beginning of a protracted decline; in others, it turns out to be a false signal. To use it to your advantage, it is important to consider the market context, news background, and other technical indicators.
Thank you for reading! We hope this article will help you consciously use the Death Cross signals in your trading strategy.
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