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.

Golden cross example. Source: Binance Academy

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.

Signs of golden cross. Source: Rekt Capital

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.

Dale Warburton

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).

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