![image.png](https://cdn.steemitimages.com/DQmcbvezSHstUMiaABrCefM3xBrretrxc12RmiaKwcnf5nt/image.png)
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### What is the Significance of Death Cross and Golden Cross in Trade?

#### Death Cross
The significance of death cross in trade is that it is often seen as a bearish signal because it is a pattern on a chart that can indicate the potential downtrend coming. It is a pattern that appears when the shorter-term moving average like the 50 simple average crosses below the longer-term moving average like the 200 simple moving average. What this means is that the recent average price is lower than the longer-term average price.

A death cross helps to signal traders that there could be a major sell-off coming and that sellers are about to take control of the market. Death cross can also help traders identify trends in the market, whether the market is about to be bearish and enter a downtrend. It can also help cryptocurrency traders identify potential exit points.


#### Golden Cross
The significance of the golden cross in trade is that it is often seen as a bullish signal because it is a pattern on a chart that can indicate the potential uptrend coming. It is a pattern that appears when the shorter-term moving average like the 50 simple average crosses above the longer-term moving average like the 200 simple moving average.

What this means is that the recent average price is higher than the long term average price. A golden cross helps to signal traders that there could be major buy pressure coming and that buyers are about to take control of the market and drive the price up. The golden cross can also help traders identify whether the market is about to be bullish and enter an uptrend. It can also help cryptocurrency traders identify potential entry points.



### What is the Effect of Death Cross and Golden Cross in the Market?

**The effect of death cross in the market** is that it can lead to fear, uncertainty or doubts in the market and limit upward moves,  which can cause more and more sellers to panic sell. A death cross is seen as a bearish signal which means that whenever it occurs, there is a potential downtrend incoming[.](https://steemit.com/hive-108451/@chimzycash/steemit-crypto-academy-season-3-week-5-post-for-yousafharoonkhan) However, it is not always accurate as sometimes the death cross doesn’t mean that the trend would continue. Nonetheless, the effect of death cross in the market is that it is a bearish signal which means that there is a potential downtrend coming and sellers are about to take control of the market and push the price down.


**The effect of the golden cross in the market** is that it can lead to FOMO which causes more and more buyers to enter the market and push the price up. A golden cross is seen as a bullish signal which means that whenever it occurs, there is a potential uptrend incoming. However, it is not always accurate as sometimes the golden cross doesn’t mean that the uptrend would continue. Nonetheless, the effect of the golden cross in the market is that it is a bullish signal which means that there is a potential uptrend coming and buyers are about to take control of the market and drive the price up.


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