“Bitcoin’s remarkable ascent continues as it approaches a historic ‘Golden Cross’, signaling a potential bullish trend after a remarkable 30% surge in just two weeks.”
Bitcoin is on the verge of forming a “golden cross,” a significant milestone that often signals a potential bull market. This occurs when the short-term price trend surpasses the long-term trend, indicating bullish momentum.
Bitcoin has experienced nine golden crosses in its history, each followed by varying degrees of upward trends. The current numbers show the 50-day simple moving average (SMA) at $27,714 and rising, while the 200-day SMA stands at $28,174.
In recent weeks, Bitcoin has made a remarkable comeback, 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.
However, it’s important to note that not all golden crosses result in sustained upward trends. Three previous golden crosses were invalidated within three months as death crosses emerged, leading to notable downward market trends.
Despite this, many investors have seen substantial gains after golden crosses. Those who held long positions for a year following these events, including the one in May 2020, experienced triple-digit percentage returns.
The impending golden cross is eagerly awaited by the cryptocurrency market, fueled by factors such as 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.
Overall, the formation of a golden cross in Bitcoin’s price trend indicates the potential for a bullish market, but it’s important to consider historical trends and market conditions before making any investment decisions.