An important technical event has just occurred in the Bitcoin BTC/USD market — for the first time in more than a year.
What Happened: Bitcoin's 50-Day Simple Moving Average (SMA), now at $19,825, has moved north of its 200-Day SMA, at $19,723. This event, known as a "golden cross", is seen by analysts as a sign of a shift in the market's sentiment and momentum, and is the seventh time this has occurred in the last 10 years.
According to FS Insights, Golden Crosses have historically been a bullish signal and preceded moves to the upside.
#Bitcoin had its "Golden Cross" of the 50-day SMA crossing the 200-day SMA as seen in the chart below.
— FS Insight (@fs_insight) February 7, 2023
Golden Crosses have historically been a #bullish signal and preceded moves to the upside. pic.twitter.com/uLlMi1jYr8
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Crypto influencer and analyst Lark Davis on Tuesday said that Bitcoin had a golden cross following a major downtrend in 2019 — and after that 160% gains followed.
The last time that #bitcoin had a golden cross following a major downtrend was in 2019.
— Lark Davis (@TheCryptoLark) February 8, 2023
160% gains followed. pic.twitter.com/jaS0HpjaDM
Analyst Guillame said that while the Golden Cross is commonly seen as a bullish indicator, Bitcoin history reveals that 100% of the time, following a Golden Cross, there has been a 10-75% decline in the days afterward. “Buying immediately after a Golden Cross resulted in losses in the very short term.”
Starting tomorrow, many TA larps will glorify #Bitcoin's Golden Cross on the Daily Chart, where the 50 DMA crosses above the 200 DMA, as something Bullish.
— Guillaume | Collider Quant (@BarefootQuant) February 6, 2023
In the ENTIRE Bitcoin history, 100% of the time, a Golden Cross resulted in a 10% to 75% decline in the following days. pic.twitter.com/PkqOlDb7kf
Price Action: BTC was trading at $22,227, up 1.70% in the last 24 hours, according to Benzinga Pro data.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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