The Tech Quiz - Season 36

Hello everyone it's a good day thanks @malikusman1 you are really a good blogger i have been participating in your contest and i must say you provide a good question and here we learn more about cryptocurrency much thanks to you and keep up the good work.

What is Golden cross in crypto.

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Within the terminal handling the cryptocurrency trade the term ‘Golden Cross’ entails a technical analysis of a chart pattern that is characterized by a short-term moving average crossing a long-term moving average. More precisely is applied the technical analysis to explain that concretely the moving average of 50 days was exceeded the moving average of 200 days. Such an arrangement is believed to be a signal from the traders and analysts of the crypto market towards an upward direction of the prices of the particular cryptocurrency.

The Golden Cross of course reveals that, in the shorter period of 50 days, price movements are improving compared to 200 days period. It is mostly used as a buy signal or a signal to hold on to positions because of further increases in the prices. It should be noted that even the Golden Cross cannot be considered an unerring signal for entailing profitable signals, and other aspects should also be taken into consideration.

What is Death cross in crypto.

In terms of the cryptocurrency, the Death Cross is most likely one of the most famous technical analysis chart indications of a bearish market characterized by the situation that the short-term moving averages cross below the long ones. When this crossover occurs, the technical traders and analysts dubbed it as bearish sign which means that there is probability that the price of the cryptocurrency will go down to a specific terminal value. Its name is derived from the ‘Death Cross’ pattern because this cross shows a bear market and it is believed to pull down the stock market for quite some time.

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This kind of hawkish signals leads trader to take the signal as sell of assets or going short. On the whole, the Death Cross and similar derivatives show one of the tools of the transition of the overall sentiment in regard to the cryptocurrency in question to the negative trend.

How both can help us in crypto trading?

Both the Golden and Death Cross are technical analysis indicators that help traders make decisions for exchanges connected to the change in trends of value of a specific cryptocurrency. Another trading pattern is the Golden Cross which is a signal to suggest float when a short-term moving average crosses the longer-term moving average. Many traders regard this as a buy signal because this may push the price of the asset still higher. On the other hand, Death Cross is also characterized in terms of a short-term MAV being located below a long-term MAV which is interpreted as a death-blow to the current bull run.

The concept is viewed by marketers as a bearish sign, this means that the price may continue to drop further. The patterning if properly analyzed and worked on, makes the trader take correct decisions about the entry and exit point on a given token or Cryptocurrency hence the improvement of strategies of this trader and the profitability of the whole cryptocurrencies marketplace.

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