Buckle Up! Bitcoin Golden Cross Has Arrived, Markets to Soar Imminently?

Bitcoin by Sal Miah  | 4 weeks ago
2 min read

The much-anticipated Bitcoin ‘Golden Cross’ between the 50 and 200 days Moving Averages have arrived. If the latest charts are anything to buy, then it may be time to buy the dips.

Golden Cross Usually Proceeds Big Market Breakouts

The golden cross is a candlestick pattern appearing on asset charts. It is used in technical analysis to indicate the potential of a major rally.

It appears when a stock’s short-term moving average crosses above its long-term moving average as is almost the case on the chart above. The two moving averages are almost converging hence the imminence of the golden cross.

The golden cross occurs in three stages; the downtrend, crossing over and uptrend. The downtrend is where the market is suggesting that traders should buy the dip before the crossing over occurs. The crossing over is where the short-term moving average crosses the long-term moving average.

After the crossing over, an uptrend begins. During this stage, the price of Bitcoin will likely increase, thus realizing profits for traders who had bought the dip. High trading volumes will also reinforce the ensuing bull market.

The period of the uptrend is also predictable and is indicated by the possibility of a death cross, which points to the end of the uptrend.

Based on the chart highlighted, traders have little time to buy before the crossing over takes place.

Is Past Performance a Reliable Indicator for Future Performance?

Bitcoin, BTC, Golden Cross

Source: TradingView

In 2015, when the golden cross occurred, Bitcoin went on to have the impressive bull run which culminated with an all-time high of almost $20,000 in 2017.

We may see a repeat of this, as many had predicted a new all-time high for the cryptocurrency.

 

Featured Image Source: Unsplash