BTC Dead Cross, BOJ's Halt on Interest Rate Hikes Could Lead to Bear Trap
CryptoNewsTerminal Staff06 Aug, 2024
BTC Dead Cross, BOJ's Halt on Interest Rate Hikes Could Lead to Bear Trap
Analysis: 'BTC Dead Cross, BOJ's Halt on Interest Rate Hikes Could Lead to Bear Trap' CoinDesk's analysis suggests that Bitcoin's impending dead cross, where the 50-day SMA crosses below the 200-day SMA, may not be a cause for alarm. The Bank of Japan Deputy Governor Uchida Shinichi's comments about holding off on interest rate hikes have eased concerns over yen carry trade liquidation, reducing risk aversion towards risky assets like BTC. Historically, dead crosses have often been misleading indicators, as the September 2023 dead cross for BTC turned out to be a "bear trap." Therefore, the current dead cross situation could potentially act as a contrarian indicator, creating a buying opportunity for investors.
