The Bitcoin golden cross, a signal that has traditionally been a bullish indicator, is now official, according to a capital manager.
The Famous Bitcoin Golden Cross Now “Official”
According to a capital manager on Twitter, the Bitcoin golden cross is now main. This is only the eighth time in the history of the coin that such a cross has occurred.
The “golden cross” has been the subject of conversation all over the online crypto neighborhoods today, however what is it that makes it so unique? Well basically, a golden cross is marked by a short-term moving average (MA) taking over a long-term one. Usually, experts think about such an occasion to be a bullish turn for the marketplace.
The bullish crossover that Bitcoin is witnessing right now is one where the 50-day MA is moving over the 200-day MA.
Here is a chart published by the capital manager that highlights this golden cross for the BTCUSD trading set:
As the above chart shows, the golden crossover looks to be complete as the 50-day MA makes a move above the 200-day MA. The capital manager thinks we will see “Strong short-term price action. Recent bearish patterns breaking down.”
What Does The Crossover Mean For BTC’s Price?
Conventionally, the golden cross has been considered a bullish signal for Bitcoin. However, there have particular exceptions throughout its history.
While golden crosses have indeed been there before the start of previous bull runs, there have also been many cases where the crossover was just a fake out event.
Opposite to the golden cross is the “death cross,” which takes place after every booming market and marks a bearish turn for Bitcoin. During fake out events, alternative false golden and death crosses usually form.
After BTC struck the current ATH of $65k, a death cross formed, however the crypto didn’t see any substantial drop following it.
Based on the death cross being an incorrect signal, it’s possible this golden cross will simply end up being another among those phony out events where an incorrect cross leads into another. However, it could also very well shoot the coin up instead, helping the coin reach the last peak that some indicators have been hinting at.
