Seasoned investors thrive near a ‘death cross’ because they know how to stay afloat if bitcoin hits the shallows. However, the way out might surprise you because it goes against everything we have learned about Bitcoin so far.

In June 2021, bitcoin traded below chart support and down to 28,800.01 when a dreaded “death cross” event spooked investors over the weekend. Then, on Tuesday, June 22, the latest bitcoin crash was a significant loss for the asset, as it lost 50% of its value compared to the time it peaked in April.

The Death Cross

According to Investopedia, the “death cross” is a specific pattern that can show up on the future trends technical chart. This sign is considered a precursor for a potential major selloff.

The “death cross” phenomenon occurs when the moving average of an asset over the last 50 days crosses below the average value of the previous 200 days.

June has been a hectic month for bitcoin, as investors ride the wave and sail across the raging storm into the hurricane’s eye.

After bitcoin falling under the 30,000.00 mark, its lowest since January, seasoned crypto trading firms have been riding the wave and taking advantage of the cryptocurrency’s fall to buy at a low price.

The Fall of China’s Blockchain Stronghold

Until 2016, China was the central playmaker in the cryptocurrency business and a stronghold of the blockchain network, accounting for the bulk of the world’s mining operations.

Afterward, in 2017, the Chinese government's move against the market took down crypto-mining firms and banned exchanges.

The Enemy at the Gates

Nowadays, China is tightening the noose on trading, but also cryptocurrency mining. Hence, in mid-June, China’s central bank sent guidelines to national banks stressing their ban on cryptocurrency services.

This was another governmental measure to gain more leverage over the market and oversee trading. What’s new this time around is the move against individual miners forcing them to leave the Asian stronghold and move their operation to more structured pro-crypto regulated countries.

Divide to Conquer

China created these crypto-migrants who are the latest Bitcoin digital nomads. After the Chinese government stirred the blockchain, it will now need time to settle mining operations elsewhere. These market fluctuations partially explain the hashrate downfall.

The hashflow will flicker during the silly season, as all indicators point to that outcome. Notwithstanding, China’s move against the hornet’s nest may help the blockchain as the “crypto-queens” settle in new thriving colonies.

Moreover, experts have realized how this move towards a more decentralized blockchain may, in the end, be positive for Bitcoin, as it will help solve some ongoing issues, namely, in terms of environmental impact and sustainability.

Eco-takeaway: Fossil fuels like coal are China’s primary energy source; hence decreasing the Chinese hashrate will ultimately diminish Bitcoin’s carbon footprint.

How to Ride The Bitcoin Wave

Historical Background

During the last century, the traditional banking system grew exponentially via deposits and loans at high interest rates, assuring the banker earned his margin.

Satoshi Nakamoto believed cryptocurrency was a real alternative to fiat money and the traditional banking system. However, Bitcoin’s constant fluctuation tramples Satoshi’s dream.

The Future

Hence, the future of cryptocurrency will probably bring forward stable coins and a financial model based on the synergy between Bitcoin and the traditional banking system.

The recent bitcoin crash provides insight to small investors and emphasizes how we should follow financial best practices and diversify investment strategies.

Active investment

Becoming a crossover investor helps you gain multiple income streams; hence you can navigate Bitcoin’s fluctuating waves and even turn a considerable profit from a “death cross” event by pulling resources from various investment markets. This move helps you stay afloat while the market sinks.

Passive investment

The buy-and-hold strategy has tax benefits and provides healthy long-term returns. This type of investment has no concern for short-term price movements and technical indicators. Hence it’s ideal for hectic times as it will keep you going regardless of any fluctuations in the market.

Final Thoughts

Satoshi’s vision may never come true if the bubble keeps growing exponentially to a point when it suddenly bursts and the dream collapses.

Nevertheless, Bitcoin still has some zealots that advocate that it will replace every fiat currency out there and bring down the traditional banking system.

I believe in synergy and despise extremists; therefore, you’ll find me standing with those that uphold that the blockchain should coexist alongside traditional banking.

Thus, we should build bridges instead of instigating rivalries fuelled by a scorched-earth policy.

Key Takeaway:

Implement financial best practices that cover both passive and active investment strategies. Small investors shouldn’t underestimate the traditional investment approach in funds, and assets like gold or silver provide a financial safety net.

Seasoned investors understand how crashes are pivotal moments to make a profit. Thus, focus on building your financial backbone and get ready to ride the wave to the next golden cross bullish breakout.

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P.S.

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