Bitcoin Approaches Golden Cross, Indicates Next Bull Run

Bitcoin Approaches Golden Cross, Indicates Next Bull Run

Bitcoin is up more than 40% since the start of the year and is currently trading in the $23,400 range, giving the digital currency its best January since 2013. gold crossor golden cross.

The golden cross occurs when the 50-day moving average (MA) approaches a cross above the 200-day moving average. Its formation is an important technical indicator that can be used to predict Bitcoin’s price movements.

In 2019, when Bitcoin saw a gold cross, the price surged from $5,000 to an all-time high of nearly $69,000 in 2021. The market is therefore eyeing the formation of the new potential gold cross as it could signal the start of a new bull run .

In addition, the golden cross could end the dreaded cryptocurrency winter that spanned the entire year of 2022.

gold cross

The possible formation of a golden cross is a positive sign for Bitcoin, but other technical indicators are also important to consider. Since 2010, the golden cross has appeared on the Bitcoin charts seven times, and five of those times have resulted in impressive rallies for the digital currency.

This pattern is interpreted as a bullish signal, indicating that the uptrend is strengthening and buying interest in the market is increasing, meaning that the indicator has become a buy signal for investors who believe in a significant price increase.

That is, if history is any guide, there could be good luck for Bitcoin’s price now that the digital currency is about to see the indicator form again, as shared by the Bitcoin Archive profile.

Bitcoin golden cross 2023
Bitcoin golden cross 2023

Despite the potential golden cross and bull run, some analysts are alert to a headwind to Bitcoin’s rise, eyeing a possible death cross on the weekly charts of the 50-day and 200-day moving averages. The prediction is that it can take place on February 6, 2023.

But it is worth noting that Bitcoin is still facing resiessence at $23,000, and breaking this level could make room for a rally that no one knows when it will end.

Source: Live Coins