What Happened: Pseudonymous crypto trader and analyst Rekt Capital believes that Bitcoin (CRYPTO: BTC) is only two days away from forming a new “Golden Cross” trading pattern.
The new #BTC Golden Cross is only two days away$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) August 11, 2021
A Golden Cross is a bullish technical indicator that occurs when the 50-day moving average crosses the 200-day moving average.
According to Rekt Capital, if Bitcoin continues to hold $45,000 or deviate higher, then the Golden Cross is likely to take place within the next few days.
A Golden Cross would completely invalidate the Death Cross observed on June 29, according to Rekt Capital.
Unlike its bullish counterpart, a Death Cross indicator signals a bear market is coming and occurs when the 50-day moving average falls below the 200-day moving average.
Incidentally, Rekt Capital was one of the first to warn about Bitcoin’s looming death cross in June, even predicting that the aftermath could lead to Bitcoin’s price dropping below the $20,000 mark.
However, seeing as Bitcoin never lost support at $29,000, the previous Death Cross was never “fully validated,” according to him.
Read also: Ethereum Trading Volume On Coinbase Outpaces Bitcoin For The First Time In Q2
Now, it appears that the best-case scenario in terms of price action has played out for the leading digital asset.
“If we get this Golden Cross then we’ll have this Death Cross invalidated completely…and we’d have a period of re-accumulation on the macro-scale,” noted the analyst in a YouTube video.
“As long as price is above this EMA [200-day moving average], that means investors are long-term bullish on Bitcoin,” he added.
Price Action: At press time, Bitcoin was trading at $46,492, gaining 3.21% over the past 24-hours.
The market-leading digital asset has rallied by 18% over the past seven days and now has a market cap of $865 billion.
