Steemit Crypto Academy Contest / S15W4 - Death Cross Vs Golden Cross

Hello everyone, I am a newcomer to the SteemitCryptoAcademy community, my knowledge of crypto is also still very basic, therefore I am interested in continuing to learn slowly by joining the challenge here.

To be honest, I have known crypto since 2014 when I was still in college. But I didn't have the capital to invest so I was just a spectator, but in early 2023 I got a good job, I collected money from sharing my work activities.

Some of the money I used to trade and invest in crypto, slowly I started making money from trading activities. Therefore I want to continue reading other interesting posts about crypto and learn more here by taking the Steemit Engagement Challenge.

1.Explain in your own words, what is a gold crossing and what is a death crossing?

This theme we will discuss the terms golden crossing and death crossing. If I'm honest, I only learned about these terms after reading some articles in this community, and also watching some content on YouTube. So I will try to explain as best I can understand after learning from the articles I have read.

In the crypto world there are two price movements that we know, namely the coin will move up (bullish) or down (bearish). Of course investors will prefer coins that will go up so they can get profits and avoid coins that will go down to avoid losses. So it is very important to know when is the right time to buy and when is the right time to sell the crypto assets we have.

The golden cross is the right moment to buy crypto assets because the price has the potential to rise, this can be seen from the 50-day moving average (MA) price moving up across the 200-day (MA) price.

Meanwhile, a death cross is the right moment to sell crypto assets because the price has the potential to fall after experiencing an increase. This can be known after the 50-day moving average (MA) price moves down past the 200-day moving average (MA) price. So a death cross is the opposite condition of the golden cross price movement.

Understanding both signals such as gold crossing and death crossing is necessary to know for crypto investors to provide signs and signals when the right time to buy and when the right time to sell. So that you can avoid losses and can get maximum profits.

2.- Use the BTC/USDT pair to show the golden cross and death cross, in the trading view. Also use the STEEM/USDT pair to show the golden cross and the death cross. Screenshots are required.

1.BTC/USDT Golden Cross

_{the green colored line is the 50-day MA moving up past the 200-day MA the blue colored line. Source : Binance.com}

I found a golden cross chart that occurred on Sunday, (10/29/2023). Where the 50-day Bitcoin average price (MA) moved up across the 200-day average price (MA), this gives a signal that the price of bitcoin will continue to rise. This signal provides quite strong evidence due to the fact that the price continued to rise for several days, from the previous price of $33,930 to be able to reach $38,414.

2.BTC/USDT Death Crossover

_{The green line is the 50 day MA which is moving down past the 200 day MA blue line. Binance.com}

Then to find the death crossover chart I found the chart occurred on Monday, (09/11/2023). Where the average price of Bitcoin (MA) 50 days moves down across the average price (MA) 200 days which should give a signal that the price will go down, but in fact after the death cross the price of Bitcoin continues to rise instead of falling.

It was recorded that the price of bitcoin at that time was worth $24,901 but continued to increase until it was able to break the price of $27,483 in just 8 days. According to my analysis, the signal has provided true evidence that the price of bitcoin will decline, but the decline in the price of bitcoin that occurs is not too deep and long. We recommend avoiding buying transactions when there is a signal like this because there is a risk that crypto assets will experience a decline.

3.STEEM/USDT Gold Cross

_{the green colored line is the 50-day MA moving up past the 200-day MA the blue colored line. Binance.com}

Next, let's observe the gold crossover that occurred on Wednesday, (1/11/2023). It is known that the average price of STEEM (MA) 50 days moved up across the (MA) 200 days, this gives a signal that the coin will increase. In fact, this signal was correct, the initial price, which was known to be $0.2154, continued to increase until it reached $0.3362 in just 8 days.

4.STEEM/USDT Death Crossover

_{The green line is the 50 day MA which is moving down past the 200 day MA blue line. Binance.com}

Let's take a look at the death crossover that occurred on Friday, (9/06/2023). It is known that STEEM's 50-day average price (MA) moved down across the 200-day (MA), this gave a signal that the coin would decline.

In fact, this signal proved to be correct as the price experienced a fairly deep decline, the initial known price of $0.1748 fell sharply until it reached the price of $0.1501.

3.- What is the difference between a gold crossover and a death crossover?

Golden crossover

• If the 50-day MA moves up past the 200-day MA
• The price of a crypto asset is potentially rising or bullish
• Good signal to buy

Death crossover

• If the 50-day MA moves down past the 200-day MA
• The price of a crypto asset is potentially down or bearish.
• Good signal to sell

4.- Besides these two chart patterns, what other indicators would you add to make technical analysis more effective when making decisions.

_{The RSI condition shows an oversold signal. Binance.com}

In doing technical analysis looking at golden cross and death cross price movements, additional analysis is needed by looking at overbought conditions and oversold conditions. What are overbought and oversold conditions? When a market condition is overbought, which is characterized by an RSI value above 70, it is said (overbought), conditions like this signal that prices will decline because market conditions do not have a buying spirit.

If the RSI value is below 30, it is said to be (oversold), which indicates that the market is not enthusiastic about selling. This is a golden opportunity to invest because it is predicted that prices will rise.

However, some professional traders say that buying when the market is oversold is not a good sign, because in fact the price is going down. According to my analysis, what professional traders say is true, so it is necessary to be careful and wise before choosing to invest in crypto assets.

5.Conclusion

For investors or traders, reading signals is the most important thing to know when buying and selling opportunities should be made in order to get satisfactory results, but all signal conditions are not entirely correct because of the volatile crypto market conditions. So you must be careful and wise in making decisions and be ready to accept all the risks involved.

Thus this article, I hope it is useful and inspires all who read it.I also invite you to participate in this contest @fantvwiki, @muzack1, @lil.albab, @inspiracion.