Buckle Up! Bitcoin Golden Cross Has Arrived, Markets to Soar Imminently?
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.
Ladies and gentlemen.. let me present the golden cross!
The last time this happened was April 24th 2019 at $5,400.
Before that was October 28th 2015 at $300. pic.twitter.com/BcBbry8FwO
— Crypto₿ear (@CryptoBull) February 18, 2020
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?
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
Sal Miah is the senior editor at Blockspectator News and is a regular contributor to a variety of cryptocurrency news websites and projects. He has written hundreds of articles on numerous topics related to blockchain and also has a special interest in financial markets. Contact him directly at email@example.com