Hello traders Lord reigneth - crypto calm your number one source for cryptocurrency technical analysis and blotchy and education in this video
we're going to be doing a
British breakdown of what a death cross is I've gotten an overwhelming amount of PM's
Questions and livestreams about that death cross and I actually have explained it in the live stream multiple times
But I just felt like with the overwhelming amount of requests
it would it just made sense to make a static video on it, so I'm going to do that and
Yeah, we're also going to talk about moving averages what they are - so a lot of Education in this
So let's get it. Let's get it going
I
Guess look into a Bitcoin at the US dollar on the
BitFenix exchange a belief, thanks good sure we got that always make sure what chart you're looking at guys
Yep if Vinick bit the Knicks exchange right so okay?
What is a moving average? That's what we need to talk about first? I'll tell you what a moving average is, okay, so
moving average is just
Pretty much added up closing candles alright, so if you hail say for instance. We have a
20-day moving average okay
you have
The closing price of 20 different kin to the previous 20 candles, okay?
When you get the closing price of all those candles you add that into one price
And then you divide it by 20 okay that gives you your answer of where
Tradingview is going to plot your moving average. It's a lagging indicator. Okay, so it's always using the past
Okay, so if you have a 50-day moving average or and so you're look. Here's your yellow your yellow
Line is your 20-day moving average
Your purple line is your 50-day moving average and your red line is your 200-day moving average. Okay, so since we're only using 20 days
You know in our formula to find out our plot point for this
Moving average, it's a faster moving average right so I consider your yellow
line your 20-day moving average kind of like a a
Fishing boat right it's it's faster right. It's not a jet ski. Jet skis are like exponential moving averages and say look
Let's call it our our fishing boat. It doesn't take that much price in time to get this thing moving up and down, right
Our 50 ma, that's gonna be a bigger ship, right
I could be more like a uh I don't know a destroyer right it's gonna be slower moving more
Lagging, it's gonna. Take more price action and more time to get that thing moving
Okay, then you have your 200-day moving average right your 200 ma. We would call it
It's like you're
It's like your aircraft carrier right very very slow moving
Hard-to-get price and time to get it to move up and down okay, and so
You have to know what a moving average is to understand. What a death crosses so now that we've talked about
Exactly what a moving average is and how we get our plot points remember if you got this
200-day moving average right here on the daily okay, if you talked about
Moving average on a four-hour 1 hour 30 minutes. It's no longer considered a a
200 day moving average is just a 200 moving average 200 point moving average right so you would just take
Say we're on the 4-hour chart. We would just take the pen that past 200
Candles and use the same formula write the closing price of 200 previous candles add them together
Divide by 200 to give us our plot point
but it's just
it's not a daily thing so just don't be confused and don't say if we're on a 4 hour a 1 hour 30 minute or
Less don't say it's a 200 day moving average
It's just a 200 moving average make sure that the terminologies ride and you understand that so
anyway
And now that we understand what a moving average is how we work with it
What is a death cross right that's kind of the next thing on the agenda?
A death cross is when you're 50 ma your 50 day, MA
closes or gets in Falls and crosses below your
200-day moving average right
We've our 20-day moving average has already crossed, so that's not good. You don't want to see that
Okay
But it's not over until the 50-day moving average crosses below this 200-day moving average were right here
We haven't been this close in
Multiple years to up to a death cross so even
When we fell below the 200 ma 200-day moving average for the first time back in February February 5th
We were only below this 200-day moving average
for a matter of less than 36 24 hours
So that was an exaggeration drop we popped off that but this time around
There is no more exaggeration. There's been consolidation and movement. We've made lower highs now
We're breaking down okay in the most previous pattern. We made on the daily candle is a rising wedge
Which is a bearish continuation pattern in this context so?
But regardless of that
the death cross
Is coming if we don't see some serious change in the direction of our candles we will almost certainly
cross over a
Death cross we will make a death cross happen, so let's go back in time guys. Let's go tripping through time
Okay, so remember we said
February fifth and now now we are below the 200 ma but before February 5th
When was the last time we even came close to that 200-day moving average the simple moving average remember that simple moving average
We're just gonna keep going back remember guys all these candles you see are
One day candles okay, so think about this day right here Bitcoin was on this you were doing something all day, right?
Hanging out you were playing sports you were at the gym you were
Doing things every day, so let's go back all the way okay, so we had a golden cross here
Which is the inverse death cross right? It's when you're you're 20, and you're just really when you're 50 ma crosses over the
Other way right. It doesn't cross over bearishly crosses over bullish li, okay
And from there when we had that golden cross we had an eight thousand percent bull run that ended
You know at that twenty thousand mark
So let's keep going back in time because that was that was the life cross that was the golden cross
So we keep going and here we are
Because what does this look like I've already made a video on this on the history of Bitcoin
And how we could determine the future possibly, but just needs to be
talked about again, okay, so
This looks like the twenty thousand run this looks of the 17,000 area this looks like the ten thousand
We fell to in a couple days, right?
This looks are the 5900 area right we bounced up. We came down this looks like that uh
Eleven thousand seven hundred area right this looks like that eleven thousand six area
Six six hundred area alright that we were at and this looks like
The death cross that we're currently making right currently about to make, okay, so
This date the death cross
was
february 9th 2014
When we crossed over and this time
We didn't see
These prices again, okay when we crossed over
Until
June 5th
2016 we're talking well over two years when we made this death cross this is why it's such a significant
Thing this is why people talk about the death cross so
two years of never seeing that high again
Right we kept making lower lows lower highs over and over and over right?
We'll say it back at this time, right
weird six hundred dollars per coin around this area, right
We fell all the way down to one hundred and sixty nine dollars
Losing pretty much four-fifths of our value okay now what happened?
This is a way. This is more education right how do we determine a trend reversal?
Well, we have to make higher highs right so we talked about the screens all the freakin time
Okay, so we eventually finally broke key. Level of
Resistance right here, okay?
Finally did you know how long it took here from from here to here this was the?
This was January of 2015
All the way to October
pretty much November of 2015 this was
10 to 11 months right here
right of
Never being able to make higher highs you stop making lower lows
Which is the first thing you have to do if you ever want to reverse, okay, so when we did that that we finally?
We touched down here right came up
Broke above this level and let me show you
Did we
We almost we pretty much got a break hooking go right break you hooked this area
And then you had a bullish engulfing candle
And then we spiked up we came down this old level
Of resistance we had has now become support we bounced off it
Five to seven times and then that was it and what did we do even before?
We spiked up to break these resistances
What happened guys we had the Golden Cross the 20 and the 50 they crossed over that 200 in a bullish manner?
and when this happened
we never saw the
200-day moving average ever again
Look how we go guys. We're just gonna keep doing this
This gives perspective of how high we've gone. We've never saw it or even came close to touching it again until
February 5th 2018
And so like we said earlier we
broke down
Huge exaggeration drop very extended from our 20 and our 50 ma, so we exploded back up. We came up here
We tested this 50 we failed
came down
We had a lot of
At a rising wedge pattern another rising which pattern we knew we were going to break down these levels here in here, so
It's for another time, but here's the problem so when we had this nasty falling wedge pattern
Our mas had plenty of time during this process this correction process to catch up to our candles
Had time to catch up to our 200-day moving average, and how currently our 20-day moving average
Has crossed thee the 200 and now soon enough if we don't start seeing some
Dramatically higher prices we're going to have our first death cross
in
two and a half years roughly so
If this happens
Looking back at history. What do death cross is normally signify. They could signify the beginning of a very
Very significant
downtrend a bear trend a bear market
Last time the death cross happened historically
to your downtrends
Didn't see higher highs
Than our previous us for a very long time, so that's what happened. That is not necessarily. Always what will happen in the future
But when you have on the charts you have nothing else to look back on. There's no more
evidence I
Mean what you're gonna take the advice of someone saying
28,000 by April by the end of March which is like in a couple days, right?
Based on what right this is how how you do it
You look back at history to try to give you a glimpse of the future and sometimes
it's not always the same, but it's a sure heck of a lot better of an analysis and
Theory then just pulling a number out of the air saying oh, man
There's just so many people that know about big now yeah 28,000 by April really no way man
I'd rather look at history and try to give us some answers versus just randomly guessing so
Gasps really, hope you enjoyed this
Grounded crypto session. We've had
On the death cross. What are moving averages? We did we cover that so now
You know what simple moving edge averages are how they're plotted on the charts
They're also simple moving averages are also used as
Supports and resistance is a lot a ton of the times right so you learned what MMA's are
You also learned what a death cross is
So yeah, hopefully you have a better understanding of what it is, and now if people ask me
I can just refer them to this video right and also guys just wanted to let you know that
We will be doing live streams on Twitch for the foreseeable future until something changes
and if it does when it does change you will know immediately so Gus
just wanted to throw that out there at the end of the video so
Really appreciate you all all your support. We keep growing every single day
Couldn't do without you wouldn't do without you so until next time stay hide
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