Could bitcoin be ahead of another bull run driven by the most recent golden cross that happened when the 50-day MA surpassed the 200-day MA?
Bitcoin’s recent price hike has led to the formation of a golden cross as the 50-day moving average outpaced the 200-day moving average. Although it is considered a lagged indicator, previous similar cases have resulted in further price hikes for the BTC, with investors predicting a similar move now as well.
Bitcoin Golden Cross took place
This popular indicator occurs when a short-term moving average (50 days in this case) exceeds a large long-term moving average (200 days) to the upside. Consequently, it works just in the opposite direction from the cross of death, and analysts usually regard this as a long-term bullish signal.
History shows several examples of this type in the existence of BTC over a decade, with some of the most mentioned in late 2015 and early 2019. Both cases have driven significant price appreciations for the primary cryptocurrency.
Another example occurred in May 2020, when the asset had problems below $10,000. Over the next few months, he fired, doubled his value, and continued into uncharted territory.
Bitcoin price recovery from recent falls has caused the 50-day moving average to increase, while the longer one – the 200-day MA – has remained relatively stable. Thus, the formation of the golden cross happened with the closing of yesterday, as pointed by several renowned BTC analysts.
$50,000 is next?
As mentioned above, bitcoin has been on the rise for the past few days, especially after Monday’s roller coaster when it finally dropped to $43,400. It recovered more than $4,000 in two days, which allowed it to close over $47,000 to form the golden cross. Furthermore, this increase occurred despite the latest FUD arriving from China.
According to network analyst Will Clemente, the BTC could continue to climb to the August high of $50,000 if it successfully breaks and stays above $47,000. In the hours after the golden cross, bitcoin dipped slightly below that level, but recovered quickly and is currently several hundred dollars above it.
Back above the 200DMA, now facing a bit of resistance at Monday’s high/September’s Monthly open ($47K-$47,150)
If those levels are indeed broken, could see a pretty swift move up to August’s high at $50.5K pic.twitter.com/aYJPkbFAFL
— Will Clemente (@WClementeIII) September 14, 2021
Further technical analysis shows the importance for the BTC to close the week above the 200-day moving average before a potential retest of the $50,000 level.
It is important to note, however, that investors should be wary of so-called fake prices – these are situations where the 50-day MM exceeds the 200-day MM briefly before returning below it again. This only confirms the belief that the golden cross should be seen as a long-term indicator.