Will Eight Golden Cross Propel Bitcoin to new highs?

Highlights 

  • A ‘Golden Cross’ is a form of a chart pattern in a short-term moving average which indicates that Bitcoin is on the verge of a bullish breakout.
  • Bitcoin on Wednesday was trading at US $47,527.95 with a 24-hour trading volume of US $32,61,62,52,179.
  • The Golden Cross was last witnessed in This is the same metric that was spotted ahead of the Bitcoin rally in January 2019, January 2020, March 2020, December 2020, February 2021, April 2021.

After a volatile week of fake news, new releases, new highs and lows, the cryptocurrency market is at a cusp of a Golden Cross moment. Especially from Bitcoin’s perspective, which has had seen some ups and downs, and needs a much-needed push to really break away and gain its previous glory.

After Bitcoin hit a record high of US $65,000 in April, the leading cryptocurrency slid to a low of US $37,341, logging a fall of 36% in May-June earlier this year. Many of the investors then had started to withdraw their funds from the exchanges and market experts observed a ‘Death Cross’ forming in June.

However, in the past few months, Bitcoin has shown signs of breaking out from the bearish pattern breaching the US $52,000 mark since May in September. But it was pulled back to US $42,000 the following week raising concerns of another bearish run. Nonetheless, Tuesday’s and Wednesday’s trading session have indicated that the Bitcoin is at a cusp of a ‘Golden Cross’ moment and is finally ready to beak the shackles of bearish run.

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On Wednesday, Bitcoin was trading at US $47,527.95 with a 24-hour trading volume of US $32,61,62,52,179. Bitcoin is up 2.46% in the last 24 hours and had a live market cap of US $8,94,31,26,50,370 at the time of writing (BST 2:00 pm). This rally was also visible as BTC registered gains by 2.51% over a 7-day period.

 

What is a Golden Cross moment?

A ‘Golden Cross’ is a form of a chart pattern in a short-term moving average which indicates that Bitcoin is on the verge of a bullish breakout. The short-term average is calculated across the 15-day moving average, while its long-term moving average is calculated on the basis of 50-day moving average or resistance level.

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It’s the long-term pattern that is of keen interest here as it indicates a substantial bull market on the horizon and coupled with high trading volumes. On Tuesday Bitcoin’s 50-day moving average stood at US $45,802, while on Wednesday it increased to US $47,527.

This is the same metric that was spotted ahead of the Bitcoin rally in February 2012, July 2014, November 2015, April 2019, February 2020, May 2020.

‘Golden Cross’ moment

One of the major deterrents what could play spoilsport in this Golden Cross moment is the price dump. Therefore, many skeptics are still unsure if there is one should read too much into it. In the past too, the Golden Cross has come, but was followed by a prolonged bearish run or a death cross moment. Market experts have warned the investors that while the Golden Cross is indeed a milestone following the market crash, one needs to take each step as they are.

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