Death Cross

Definition ∞ A Death Cross is a technical analysis indicator where a shorter-term moving average crosses below a longer-term moving average on a price chart. This pattern is widely interpreted as a signal of a potential significant downward trend or bear market in an asset’s price. It suggests that recent price momentum has weakened considerably relative to longer-term trends.
Context ∞ The occurrence of a Death Cross is often a subject of significant discussion in financial news, including the cryptocurrency markets. Analysts scrutinize these signals for potential implications on asset valuations and market sentiment. Its appearance can precede periods of sustained price depreciation, prompting investors to reassess their portfolio allocations and risk exposure.