Letter #13: Bitcoin and the Death Cross

Dear Readers,

May and June 2021 have been rather difficult for Bitcoin. After hitting a new all-time high in fiat terms in April, Bitcoin entered a correction phase after repeated bearish news on the topics of environmentalism, regulation, and security. Since the initial price drop, Bitcoin and its legion of investors have seemed uncertain on the next move for the market, and that uncertainty has been visible as Bitcoin’s price has oscillated between $30,000 and $40,000 for weeks.

In financial markets, it’s common for traders and investors to look for technical indicators that they hope will give them a clue as to where prices will go next. After all, it’s impossible to know whether an asset’s price will rise or fall on any given day, or foresee the bullish or bearish events that may drive those changes in price. While there are a variety of short-term and long-term indicators for any type of financial market, one that is most commonly referenced during periods of market indecisiveness is the death cross.