The recent rise in Bitcoin prices has led to the formation of a golden cross as the 50-day moving average has surpassed the 200-day moving average. While it is considered an indicator of lag, previous similar cases have led to further price increases for BTC, and investors also anticipate a similar move.
Bitcoin Golden Cross took place
This popular indicator occurs when a short-term moving average (50 days in this case) exceeds the significant long-term moving average (200 days) on the rise. Consequently, it works precisely the opposite way to the cross of death, and analysts typically view it as a long-term bullish signal.
History shows numerous examples of this type in the existence of BTC for more than a decade, with some of the most prominent in late 2015 and early 2019. Both cases drove significant appreciations in the prices of the major cryptocurrency.
Another example occurred in May 2020, when the asset struggled below $ 10,000. In the following months, it shot up, doubled in value, and continued into unfamiliar territory.
The recovery in Bitcoin prices from recent falls has led to an increase in the 50-day moving average, while the longest (200-day MA) has remained relatively stable. Thus, the formation of the Golden Cross occurred with the closing of yesterday, as pointed out by several well-known BTC analysts.
The next is € 50,000?
As mentioned earlier, Bitcoin has been in rotation in recent days, especially after Monday’s roller coaster, when it finally fell to $ 43,400. He has recovered more than $ 4,000 in two days, which allowed the closure above $ 47,000 to form the Golden Cross. In addition, this increase occurred despite the most recent FUD from China.
According to chain analyst Will Clemente, BTC could continue to rise to the $ 50,000 high in August if it breaks successfully and stays above $ 47,000. In the hours after the golden cross, bitcoin fell slightly below that level, but it has recovered quite quickly and is currently at several hundred dollars.
Again above the 200DMA, it now faces some resistance to Monday / September highs ($ 47K- $ 47,150)
If these levels were broken, we could see a fairly rapid rise to the maximum in August, at $ 50.5 thousand pic.twitter.com/aYJPkbFAFL
– Will Clemente (@WClementeIII) September 14, 2021
An additional technical analysis shows the importance of BTC closing the week above the 200-day moving average before re-testing the $ 50,000 level.
It is worth noting, however, that investors should be wary of so-called price falsifications: these are situations in which the 50-day MA briefly exceeds the 200-day MA before falling below it again. This only confirms the belief that the golden cross should be considered as a long-term indicator.
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