Bitcoin’s upcoming “golden cross” signals potential bullish momentum, where short-term price trends surpass long-term ones. This indicator often indicates the possibility of a bull market.
Bitcoin On the Verge of Forming Golden Cross
Bitcoin (BTC), the largest and most widely known cryptocurrency, is on the cusp of achieving a significant milestone known as a “golden cross.” Until now, Bitcoin has witnessed nine golden crosses in its history, each followed by varying degrees of upward trends.
Apparently, this indicator suggests that bullish momentum is strengthening, marked by the 50-day simple moving average (SMA) overtaking the 200-day SMA in an upward trajectory.
However, the current numbers show the 50-day SMA at $27,714 and steadily rising, while the 200-day SMA stands at $28,174, as reported by the TradingView charting platform.
In recent weeks, Bitcoin has made a remarkable comeback, with its price surging by 30% in just two weeks. This surge has taken Bitcoin’s price to over $35,000, a level it last reached in May 2022.
Golden Crosses Historical Trends and Expectations
Notably, Bitcoin has seen nine golden crosses in its history. However, three of them, which took place on July 11, 2014, July 15, 2015, and February 19, 2020, were invalidated within three months as death crosses emerged, leading to notable downward market trends.
The other instances of golden crosses were followed by varying degrees of upward trends, some even resulting in substantial gains. Investors who held long positions for a year after these events, including the one in May 2020, saw their investments yield triple-digit percentage returns.
Interestingly, following the golden cross in September 2021, Bitcoin skyrocketed to an all-time high of $69,000 in the weeks that followed, only to see most of those gains eroded within three months as it entered another death cross phase.
Meanwhile, the cryptocurrency market eagerly awaits the impending golden cross, fueled by factors like the anticipated U.S.-based spot ETF launch, growing interest in Bitcoin as a safe-haven asset, and the approaching Bitcoin halving event scheduled for 2024.
