Bitcoin Golden Cross explained
Ninth Golden Cross for Bitcoin might signal a bullish run for crypto markets again
On 7 February 2023 Bitcoin has officially made a Golden cross on its price chart (Editor's note: Golden cross is a term which describes 50-day moving average crossing above the 200-day moving average and is considered a positive signal in technical analysis). This pattern has occurred only eight times in Bitcoin's history.
This chart pattern is significant because it can indicate the beginning of a long-term uptrend in Bitcoin prices. In this article, we will explore the truth behind the Bitcoin Golden Cross, including what it is, how it works, and its historical performance.
What is the Bitcoin Golden Cross?
The Golden Cross is a technical analysis term that describes a chart pattern where the 50-day moving average crosses above the 200-day moving average. The 50-day moving average is the average of the last 50 days of price data, while the 200-day moving average is the average of the last 200 days of price data. The Golden Cross is considered a bullish signal that can indicate the beginning of a long-term uptrend in stock prices.
Past Bitcoin golden cross dates
The golden cross event for Bitcoin occurs very rarely, with some of the past confirmed times being (Editor's note: This is not a complete list!).
- 2012, February
- 2015, October
- 2020, May (followed by the exponential $BTC growth of 2021)
- 2021, September (in November 2021, $BTC all-time high price is reached)
- 2023, February
The Bitcoin Golden Cross has occurred eight times in the past, with the latest Golden Cross being the ninth.
Historical Performance of the Bitcoin Golden Cross
Historically, the Golden Cross has performed well in predicting Bitcoin's price movements. When the Golden Cross occurred in September 2021, Bitcoin hit its all-time high of $69,000. Based on historical data, the Bitcoin Golden Cross has performed well, with significant price increases and profitable trades. It seems that it is quite correlated with bull/bear market cycles of Bitcoin too:
$BTC #Bitcoin
— HornHairs 🌊 (@CryptoHornHairs) January 12, 2023
2015-2017 bull market: 1064 days
2017-2018 bear market: 364 days
2018-2021 bull market: 1064 days
2021-*current* market low: 364 days
Days left until the top if we just carbon copy the cycle timeframe again: 1001 days pic.twitter.com/KoNZxJRuy5
Investors: What to do during Golden cross and Death cross
The Golden Cross is an essential tool for investors in the volatile Bitcoin market. It suggests that the market sentiment is positive and that Bitcoin's prices may continue to rise.
For traders looking to take advantage of the situation, a classic strategy is to buy Bitcoin when the Golden Cross occurs and to sell it when the Death Cross occurs, which is the opposite event of the Golden Cross.
However, investors must exercise caution and not rely solely on this pattern to make investment decisions. The Golden Cross is just one of many indicators that investors should consider before making a move.
Thank you for reading!
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