Gold Market Brings Bad News for Bitcoin: A Potential Death Cross

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Spot gold is inching towards forming a “Death Cross” on its daily chart, which may transform its ongoing downside correction into a full-fledged bear trend. A death cross occurs when an asset’s short-term moving average falls below its long-term moving average. Many analysts and strategists look at the crossover as a sign of a sell-off wave, leading to a long-term downside move. Gold risks forming Death Cross after an $80 decline. Source: XAUUSD on TradingView.com Presently, gold’s 50-day moving average (50-DMA) stands at $1,880, while its 200-day moving average is at $$1,801. The precious metal’s latest drop after a flurry of positive COVID-19 vaccine reports indicates that it may cover the $79 gap between its moving averages at least by the next quarter, thus forming a death cross. Bitcoin A bearish setup in the gold market may leave Bitcoin under a similar downside risk. In retrospect, the flagship cryptocurrency lags…

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