More

    Everything You Need To Know About The Bullish Signal

    Today, the talk across the crypto market is that Bitcoin price is forming a Golden Cross – a potentially bullish signal according to conventional knowledge. But this is the cryptocurrency market, and anything is possible given the potential for sudden, sweeping regulation, hacks, or worse.
    With the Golden Cross now here, we are looking back at the history of the signal, and breaking down exactly what it means and how this could impact Bitcoin price action in the days ahead.
    Bitcoin Price Forms Eighth Ever Golden Cross
    Forget the digital gold narrative. All across crypto Twitter, online forums, and anywhere else cryptocurrency community chatter exists, the discussion is centered around the Golden Cross that’s forming on the BTCUSD trading pair.
    According to Investopedia, a Golden Cross “occurs when a short-term moving average crosses over a major long-term moving average to the upside.” It is “interpreted by analysts and traders as signaling a definitive upward turn in a market,” the description continues. Specifically, this Golden Cross refers to the 50-day moving average crossing above the 200-day moving average.
    Related Reading | Bitcoin Price “Pitchfork Channel” Could Pin-Point The Last Dip Ever
    Because this could be the definitive upswing in Bitcoin price that takes the cryptocurrency to its potential cycle peak, all eyes are on the signal. But not everyone knows what to look for, or what it means.
    In the chart below, the inverse signal – the Death Cross – failed to produce the expected results, so there is no telling if the bullish version confirms either. Looking back at the history of the two signals, the situation becomes even more mixed.

    The Golden Cross is here | Source: BTCUSD on TradingView.com
    Everything You Need To Know About The Bullish Signal
    The leading cryptocurrency by market cap has had eight Golden Crosses and seven Death Crosses in its short history, according to the Bitstamp chart.
    The Golden Cross to start the 2013 bull market only ever Death Crossed when a bear market finally began, but not before a quick Golden Cross/Death Cross fake out.
    After the cryptocurrency bottomed in 2015, another fake out situation where the cryptocurrency Golden Crossed, then Death Crossed, then Golden Crossed again. The last signal brought Bitcoin from under $500 to $20,000. A Death Cross also started the 2018 bear market, until a Golden Cross took the cryptocurrency out from bear market lows.

    Could this be the last bullish signal before the peak is in? | Source: BTCUSD on TradingView.com
    In late 2019 and into early 2020, consolidation resulted in more mixed signals. It started with a Death Cross in October 2019, then, like the 2017 bull run, a Golden Cross faked out into a Death Cross, only to then Golden Cross again and take Bitcoin from $4,000 to $65,000. After such a move, it isn’t surprising to see why investors might be skeptical of another Golden Cross yielding similar results.
    After the recent local top at $65,000, Bitcoin formed another Death Cross, but it didn’t produce much downside. With a Golden Cross back, the market is now nervous of another fake out type situation, but also fearful of missing out on potential upside.
    Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course
    In the past, Bitcoin has been the underdog, climbing its way to the top any way it could against all odds. Today, things are very different, and more sophisticated investors are now involved – including institutions, corporations, hedge funds, and more.
    With smart money finally involved in the crypto space, following a traditional market all-in signal like the Golden Cross could be the more wise play.

    Will the Bitcoin golden cross ultimately be…
    — NEWSBTC (@newsbtc) September 15, 2021

    Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
    Featured image from iStockPhoto, Charts from TradingView.com

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 47,067.00
    ethereum
    Ethereum (ETH) $ 3,379.58
    cardano
    Cardano (ADA) $ 2.33
    tether
    Tether (USDT) $ 0.998148
    binance-coin
    Binance Coin (BNB) $ 408.15
    xrp
    XRP (XRP) $ 1.06
    solana
    Solana (SOL) $ 140.36
    polkadot
    Polkadot (DOT) $ 33.50
    dogecoin
    Dogecoin (DOGE) $ 0.240054
    usd-coin
    USD Coin (USDC) $ 1.00
    avalanche-2
    Avalanche (AVAX) $ 64.51
    terra-luna
    Terra (LUNA) $ 34.69
    binance-usd
    Binance USD (BUSD) $ 1.00
    chainlink
    Chainlink (LINK) $ 27.99
    uniswap
    Uniswap (UNI) $ 24.36
    litecoin
    Litecoin (LTC) $ 179.17
    bitcoin-cash
    Bitcoin Cash (BCH) $ 621.45
    algorand
    Algorand (ALGO) $ 1.94
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 47,045.00
    cosmos
    Cosmos (ATOM) $ 33.41
    internet-computer
    Internet Computer (ICP) $ 55.50
    filecoin
    Filecoin (FIL) $ 84.36
    matic-network
    Polygon (MATIC) $ 1.33
    stellar
    Stellar (XLM) $ 0.319013
    tron
    TRON (TRX) $ 0.104668
    ftx-token
    FTX Token (FTT) $ 62.10
    vechain
    VeChain (VET) $ 0.112204
    ethereum-classic
    Ethereum Classic (ETC) $ 56.29
    dai
    Dai (DAI) $ 1.00
    theta-token
    Theta Network (THETA) $ 6.26
    compound-ether
    cETH (CETH) $ 67.87
    tezos
    Tezos (XTZ) $ 6.16
    eos
    EOS (EOS) $ 5.31
    okb
    OKB (OKB) $ 18.48
    pancakeswap-token
    PancakeSwap (CAKE) $ 21.47
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.188772
    elrond-erd-2
    Elrond (EGLD) $ 240.78
    aave
    Aave (AAVE) $ 359.54
    monero
    Monero (XMR) $ 258.97
    quant-network
    Quant (QNT) $ 348.20
    cdai
    cDAI (CDAI) $ 0.021700
    iota
    IOTA (MIOTA) $ 1.64
    bitcoin-cash-abc-2
    Bitcoin Cash ABC (BCHA) $ 237.50
    compound-usd-coin
    cUSDC (CUSDC) $ 0.022265
    ecash
    eCash (XEC) $ 0.000231
    staked-ether
    Lido Staked Ether (STETH) $ 3,353.49
    shiba-inu
    Shiba Inu (SHIB) $ 0.000008
    hedera-hashgraph
    Hedera Hashgraph (HBAR) $ 0.420049
    the-graph
    The Graph (GRT) $ 0.812982
    near
    Near (NEAR) $ 8.21