- Even though Bitcoin can't hold 10,500 level and went below 10,000 level. Bitcoin (BTC) just added motivation to the bullish case. it succeeded to make a golden cross today, indicating the potential for a major rally. The last time golden cross appeared on the daily chart was in April 2019. It was followed by a 175 percent price rally in Q2.
Golden cross one of the most critical price action. It is not occuring frequently. When it happens, it may provide many opportunities.
Here is formal definition of a golden cross:
The golden cross is a candlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average. The most commonly used moving averages are the 50-period and the 200-period moving average Source: investopedia.com
As you see the daily graph on Binance.com, Bitcoin's 50 daily MA crossed above the 200 MA. This golden cross is generally power of bullish sentiment in the market. It may make take us to all time highs this year.
We are officially in a bullish market when two things happen:
1- Golden cross
2- Price action above the 200 MA
So Bitcoin's golden crosses are generally provides life time opportunity. Bitcoin’s halving is set to take place in 84 days, which will also have a major implication to its hash rate, supply, and ultimately its price. All of these factors surely have a critical role to play in Bitcoin’s price and hence the golden cross. However, although golden cross is strong bullish sign, it is a lagging indicator. Therefore, a golden cross should always be confirmed with other filters and indicators before putting on a trade. Here is the previous golden crosses for your reference.
Thanks for reading. I hope you’ve found it helpful.
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