Death cross and golden cross in regards to cryptocurrency - how relevant these are?
Each trader - no matter if we are speaking about those who trade on stocks, forex or cryptocurrencies is using some set of tools to predict the future behaviour of the price of those assets. Most popular ones are fundamental and technical analysis (How to profit from bitcoin).
For those who buy and sell Bitcoin, one of the most important elements of technical analysis are moving averages. They apply to different time frames - the most popular ones are 50-day and 100/200-day ones (although for the long term we can use different timeframes - like 50 weeks and 100 weeks ones). When they cross, we observe two crucial signals: death cross and a golden cross. For example, the last big death cross for Bitcoin took place in late March 2018. The best and most recent example of the latter one is BTC golden cross in March 2019, which took its price for $4000 to $14000 3 months later.
How to recognize the golden cross?
The golden cross is an extremely bullish signal if you buy any currency (not only BTC, but as well XMR, ZEC or BCH). You can recognize it when the shorter-term moving average goes above the longer-term one (see position 3 on the picture).
It is worth to mention, that not always the trend begins at the same time the cross takes place. It is a sign, that the downtrend is exhausted, and a change is coming ( with 50 and 200-day ones, usually after 1-2 weeks). For both the golden and death crosses - there is a higher probability of the change of the trend if moving averages cross as close as possible to the actual price
How to recognize the death cross?
The death cross is an opposite factor from the Bitcoin golden cross - it is a strong bearish signal. You can recognize it when the longer-term moving average goes above the shorter-term one (see positions 1 and 2 on the picture). Still, both for golden and death cross, they are made invalid when those two averages cross again the next day.
Are the golden/death crosses 100% reliable factors?
No technical (nor fundamental) analysis is 100% accurate. It gives a signal, that there is a high probability of trend to change soon. Still, such a thing may not happen due to external and unforeseen events taking place (massive buy/sell orders, hacks to big exchanges etc.).
When can we expect the next?
Many of the analysts from the crypto community (like @theMoon on Twitter) expect a golden cross somewhere in December 2019, which is highly anticipated because of the upcoming Bitcoin halving 2020 (expected in May). Nevertheless, in past years, almost always late December meant drops in BTC price due to such external factors, like Christmas, taxation period and winter holidays. Which might be for many crypto investors the last opportunity to buy Bitcoin cheap.