A "death cross" is a bearish signal that occurs when a short-term moving average crosses below a long-term moving average. Typically, the death cross is associated with a potential downturn in an asset's price.

Here's a breakdown of its components:

Moving Averages: Moving averages are used to smooth out price data and identify trends. Two common types are the simple moving average (SMA) and the exponential moving average (EMA). They calculate the average price over a specific number of periods.

Short-Term vs. Long-Term: In the context of a death cross, a short-term moving average, often the 50-day or 50-period moving average, is compared to a longer-term moving average, frequently the 200-day or 200-period moving average.

Bearish Signal: When the short-term moving average crosses below the long-term moving average, it forms a "death cross." This event is considered a bearish signal because it suggests that recent price trends are weaker than long-term trends.

Downtrend Warning: The death cross is interpreted as a warning of a potential downtrend or extended period of declining prices. It indicates that the average price over the short term is lower than the average price over the long term, implying a shift in market sentiment.

It's important to note that while the death cross can be a useful technical indicator, it's not foolproof, and false signals can occur. Traders and investors often use additional analysis and consider other factors before making trading decisions based solely on the presence of a death cross.

Conversely, there's also a "golden cross," which is a bullish signal. It occurs when the short-term moving average crosses above the long-term moving average, suggesting a potential uptrend.

In the context of cryptocurrencies, traders and analysts often use these moving average crosses to help inform their decisions, but they should be used in conjunction with other technical and fundamental analysis methods for a more comprehensive view of the market.