Source: Benjamin Cowen\/YouTube<\/figcaption><\/figure>\nAccording to Cowen, the reason for both sides getting wrecked is because BTC will witness a death cross that will trick traders and investors. A death cross happens when an asset\u2019s 50-day moving average dips below its 200-day moving average, a sign that the asset could be entering into a more pronounced bear phase.<\/p>\n
\u201cWhat normally happens when [an asset] goes down right before the death cross hits, is it leads to people selling because they think, \u2018Oh, there\u2019s a death cross. That\u2019s a bad thing.\u2019 And then they sell into the death cross. <\/em><\/p>\nBut the reason why oftentimes that\u2019s a bad strategy is because golden crosses and death crosses, by definition, are lagging indicators. They are based off of moving averages, and moving averages are of course lagging indicators\u2026<\/em><\/p>\nWhen you see [a] death cross and when you see [a] golden cross, what tends to happen in the short term is the opposite of what you expect in the short term.\u201d<\/em><\/p>\nThe crypto strategist goes on to note that during pre-election years, the S&P 500 tends to have a seasonal correction, which kicks BTC into a downtrend for the rest of the year \u2013 whether or not the stock market index goes up or down.<\/p>\n
\u201cWe also know, and we discussed this back in July, that the S&P 500 tends to get a seasonal correction in August and September of the pre-election year, and what normally happens is it kicks Bitcoin into a downtrend for the rest of the year regardless of [how] the S&P 500 does.\u201d<\/em><\/p>\nBitcoin is trading for $27,031 at time of writing, a fractional increase during the last 24 hours.<\/p>\n