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Bitcoin Bulls Say Golden Cross is ‘Imminent’
The bitcoin golden cross is a highly anticipated technical indicator that typical foreshadows bullish price action. Bitcoin analysts, investors and traders are looking closely at current price movements which at present suggest a strong push is imminent in the coming weeks.
What is the Golden Cross?
According to Binance Academy, a golden cross is a chart pattern where a shorter-term moving average (MA) crosses above a longer-term moving average. This is typically considered to be a bullish signal.
A golden cross occurs in three phases:
- There’s a downtrend where the shorter-term MA is below the longer-term MA.
- The market reverses and the shorter-term MA crosses over the longer-term MA.
- A continued uptrend starts and the shorter-term MA stays above the longer-term MA.
When considering a golden cross, the most commonly used moving averages are the 50- and 200-day periods. Once the crossover happens, the longer-term moving average is typically considered to be a strong area of support.
The opposite of a golden cross is a death cross, where a shorter-term moving average crosses below a longer-term moving average. This is typically considered to be a bearish signal.
Potential Signs of Bitcoin Golden Cross
The chart below illustrates the potential intersection between the blue line (50-day MA) and black line (200-day MA), signalling a potential golden cross. Notice the inverse (death cross) that occurred towards the end of June highlighting a market crippled by fear.
Analysts suggest that a golden cross so soon after a death cross would create a “face-melting pump” reminiscent of the 2013 and 2017 bull cycles.
Rekt Capital, one of the more active technical analysts on Twitter, suggests it may well happen within days.
Will US$50,000 Prove to Be a Strong Resistance Level?
Despite the bullish talk of golden crosses and positive on-chain metrics, others have been more circumspect suggesting that bitcoin first needs to overcome the psychological barrier of US$50,000.
At this point, momentum appears to have shifted towards the bulls. Well-known podcaster Scott Melker seems to think so too and offers some interesting insights into the current market dynamics.
Author
Dale Warburton
Dale is a former attorney turned passionate Bitcoiner with an interest in investments, macro, geopolitics, innovation, tech, nature, wildlife, MMA and Bitcoin (of course).
