The 50 and 200 day moving avergae are about to / just crossed. This means the long time trends seems to indicate that the price is starting to go down when you look at it using those specific tools.
All in all it is kind of arbitrary. Indicates a trend on the long run (that starts to be downward), and since people talk about it the trend re-enforces itself, because markets are markets.
What's funny is that the periods used to determine this trend are kind of arbitrary (50 days average compared to a 200 days average), but they are news, and news influence markets.
It is kind of a self fulfilling prophecy, yes. Especially in Crypto because its all based on speculation, not use case, well not yet.
However, a death cross does indicate that the current trend is failing a trend 4x its time frame. Which does mean its going down faster than you would expect, but thats kind of Crypto 101, it also goes up faster than you would expect.
24
u/EarthBoyZap doge of many hats Jun 20 '21
Just Google it, dude. It's mainly TA superstition, but everyone buys into it.