Bitcoin with a golden cross! Will the increases gain even more momentum thanks to it?

Bitcoin

The event that many investors have been waiting for has become a reality. A golden cross has appeared on the daily chart of Bitcoin. In today’s analysis we will look at, among other things, its historical impact on the price. We will check whether it really is as bullish a signal as many assume.

Bitcoin on the weekly chart

However, before we move on to the golden cross, we will look at the Bitcoin chart from a further perspective. This is because here there are several factors that prompt us to sharpen our vigilance. The weekly interval illustrates a 3.4% decline in the value of BTC. A very clear bearish RSI divergence is also visible. Keep in mind, however, that it may be significantly stretched and may not immediately affect the reversal of the price action. In addition, the 200-week moving average (green line), located in the horizontal resistance zone, is located in the vicinity of $25,000. The combination of these factors could influence the rejection of a possible attempt to break through this area. Meanwhile, the stochastic RSI is making a bearish cross and also heading downward. On the other hand, a positive factor is the RSI itself, which remains above the 55 level, which still gives a chance for a bullish continuation.

Bitcoin

Meanwhile, the expected death cross between the 50-week and 200-week SMA is still unconfirmed. It is, however, inevitable. Its appearance has the right to strengthen the bearish narrative.

Bitcoin

Bitcoin on the one-day chart presents a golden cross!

While the weekly chart expects a death cross, the same moving averages, with respect to the daily chart, form a gold cross.

Looking at the data, we see that this event, although popular, occurred extremely rarely. Recall that a golden cross is defined by the moment when the 50-day moving average crosses the 200-day moving average from below. What was the history of this event so far? Let’s check it out!

January 2012: -39% in 29 days,

July 2014: -76% in 183 days,

July 2015: -29% in 39 days,

October 2015: +69% in 7 days (and +6592% in 781 days),

April 2019: +159% in 64 days,

February 2020: -60% in 24 days,

May 2020: +28% in 89 days (and +573% in 329 days),

September 2021: -16% in 7 days (and +46% in 57 days).

Bitcoin

As we can observe, the golden cross did indeed contribute to Bitcoin’s value increases. However, this occurred mainly at the beginning or during the bull market. Meanwhile, declines also took place. So are increases still possible after its completion? By all means, yes! However, investment decisions should not be made based solely on this one factor. It is worth looking for confirmation among other indicators.

What lies ahead for Bitcoin in the near future?

Meanwhile, the local price action is again closing in consolidation. In the chart below, we have outlined what we believe is the most possible scenario for it to play out. The dashed horizontal lines indicate support and resistance. The chart, juxtaposed with the RSI indicator, reveals simultaneous bullish as well as bearish divergence. A gentle pullback in price and an attempt to attack $25,000 therefore seems highly likely. A bullish divergence would be played out here, which would consequently strengthen the bearish one. However, a possible leap over the designated resistance and confirmation of it as support has the right to lead to another stronger upward impulse. In case of declines, it is worth watching the behavior of the price between the CME gap and the $21,500 area.

Bitcoin
Łukasz

Łukasz

Market Analyst

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this article

More analyses

All articles loaded
No more articles to load

More news

XRP

XRP outperforms Bitcoin and Ethereum

In the past week, XRP decisively outperformed its main rivals, Bitcoin (BTC) and Ethereum (ETH), in terms of capital flows. Moreover, it recorded an impressive $2.7 million…

Solana and Avalanche on the eye of investment funds

Two alternative coins, Solana (SOL) and Avalanche (AVAX), are gaining increasing interest and are successively attracting the attention of investment funds. Although bitcoin (BTC) remains the main…
All articles loaded
No more articles to load

Learn more

Cryptocurrency wallets

Cryptocurrency wallets

We talked about security when trading crypto assets in an article titled “Online security“. We also mentioned how important it…
hardware wallets

Cryptocurrency hardware wallets

From the article titled “Cryptocurrency wallets” you learned about the different types of wallets. They were briefly characterized there. Let’s…
Where to buy cryptocurrency brokers

Which cryptocurrency Brokers to use

In the article “Where to Buy Cryptocurrencies (Exchanges)“, we introduced you to which exchange platforms you can purchase cryptocurrencies on.…
Trading cryptocurrencies

Trading cryptocurrency

In the cryptocurrency market, you face many opportunities to invest in cryptocurrency or buy or sell cryptocurrency. If you want…
All articles loaded
No more articles to load

Latest news

All articles loaded
No more articles to load