admin • Bitcoin is likely to encounter its seventh ‚golden cross‘ in the past ten years, having risen more than 40% since the year’s beginning.
• A golden cross pattern occurs when the 50-day SMA crosses over the 200-day SMA resulting in a cross on the price chart.
• Historically speaking, not all Bitcoin price increases have followed golden crosses, yet traders and chart analysts view it as a sign of long-term price increases.
What is a Golden Cross?
When the price of a security crosses its 50-day and 200-day simple moving averages (SMAs) on the price chart, this is known as a „golden cross.“ Moving averages are indicators that look in the past, thus the signal simply informs us that the market’s recent advances have outpaced its historical increases. Traders and chart analysts view it as a sign of long-term price increases.
Bitcoin’s Previous Golden Crosses
The last time a golden cross was observed for Bitcoin was in September 2021, when it resulted in a 135% increase in value. However, the one in May 2020 was much more substantial. The 50-Day SMA of Bitcoin should pass the 200-Day SMA in about a week, assuming there isn’t a sudden and prolonged decline of more than 30%. In 2019, one of these consequential golden crossings occurred when Bitcoin was trading at around $5,000 which resulted in an all-time high for Bitcoin at approximately $69,000 by 2021.
Will This Golden Cross Be Positive for Bitcoin?
All things considered, the approaching golden cross pattern is seen as bullish sign for cryptocurrency markets and might predict a promising future for Bitcoin despite other technical indications leaning towards short term bearishness. It will be interesting to see if this pattern indicates sustainable growth or not.
Conclusion
The impending golden crossing appears to be positive news for cryptocurrencies overall but may not necessarily result in sustained growth beyond current trendline analysis suggests. It remains to be seen whether this trend will continue into next year or not with increasing volatility across all markets affecting investor confidence and prices accordingly.
Takeaway
The upcoming ‘golden cross’ appears to be bullish news for cryptocurrency markets however there are no guarantees that this trend will result in sustained growth beyond current trendlines suggest and investors should remain cautious when investing despite what market sentiment may suggest at any given time due to ever changing volatility across all markets affecting investor confidence and prices accordingly.