Analyst: Bitcoin ready to form a “golden cross” pattern

Bitcoin has approached the formation of the historical pattern “golden cross” on the price chart, noticed cryptocurrency market analyst Mustache on Twitter (the social network is blocked in Russia). This is a bullish indicator, which is usually seen as a signal for further growth in asset prices.

A “golden cross” usually represents a bullish trading signal. When the short-term average rises above the long-term, it indicates a potential shift in the direction of the market trend, which is why the pattern is considered to signal the start of a bull market.

The opposite death cross signal occurs when the short-term average drops below the long-term average, which is usually indicative of a bearish trading signal. The expert recalled that the “cross of death” was formed on the Bitcoin chart in September 2022, before the collapse of the FTX crypto exchange.

If a “golden cross” is formed, then it will be the first for Bitcoin, Mustache noted.

On February 7 of this year, a “golden cross” formed on the chart of the S&P 500 index, it became the 49th in almost 100 years (since 1928). Analysts at Bank of America noted that the index’s return after the “golden cross” reaches its peak 30, 65 and 195 days after the signal. At the same time, in 75% of cases, the yield is above average.

30 days after the “golden cross” fell on March 8, when the US stock market collapsed amid problems in the banking sector. The 65th day fell on April 13 – on this day the index showed growth after several days of decline. The 195th day will fall on August 21st.


Source: Cryptocurrency

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