零点课堂 | Golden Cross and Death Cross Explained（3）
A death cross confirming a downtrend in Bitcoin.
Now that we understand what a golden cross is, it’s fairly easy to understand why a death cross is a bearish signal. The short-term average is crossing below the long-term average, which indicates a bearish outlook on the market.
False death cross crossover signal on the SPX in 2016.
As you can see on the example, the market printed a death cross, only to resume the uptrend and print a golden cross shortly after.
Golden cross vs. death cross - what’s the difference?
We’ve discussed both of them, so the difference between them isn’t difficult to understand. They are essentially the polar opposites of each other. The golden cross may be considered a bullish signal, while the death cross a bearish signal.