Bitcoin Prints A ‘Bullish’ Technical Pattern That Last Time Resulted In A 157% Spike
- Bitcoin completes a golden cross, a signal of definitive upward turn in the market
- This technical pattern goes through three stages, a downtrend, shorter moving average crossing up through the longer moving average, and finally the continuing uptrend
Bitcoin price is back at the level we were at the beginning of last week. However, we are doing a bit better than yesterday, when we briefly dropped below $9,500. Currently, we are hovering around $9,600 level while volume on the top ten exchanges is keeping above a billion-dollar level. However, things might be ready to take a turn for the good as CryptoBull shares a bullish long term indicator that bitcoin has hit today.
Ladies and gentlemen.. let me present the golden cross!
The last time this happened was April 24th 2019 at $5,400.
Before that was October 28th 2015 at $300. pic.twitter.com/BcBbry8FwO
— Crypto₿ull (@CryptoBull) February 18, 2020
The golden cross is a technical pattern which is a bullish signal and occurs when short-term moving average breaks above the long-term moving average. This indicator shows the potential for a major rally.
In comparison to short-term indicators, long-term indicators carry more weight, and the golden cross suggests a bull market on the horizon. This indicator is further reinforced by high trading volumes. And as we have been seeing trading volume has been keeping above $1 billion in 2020, moreover the 7-week average has also been on the rise.
A golden cross has three stages, in the first stage the downtrend bottoms out as selling of the asset gets depleted. The second stage is the short moving average forming a crossover through the large moving average to trigger a breakout. This confirms a trend reversal. In the last stage, we see continuing uptrend that leads to higher prices.
As the analyst himself shared, the last time this indicator occurred was on April 24th, 2019 when the bitcoin price was at $5,400. As we all remember the 2019 bull rally in Q2, Bitcoin made its yearly high at $13,900, a jump of 157%.
Before this, the golden cross occurred on Oct. 28, 2015, when the price of the crypto asset was $300. By Nov 5, the price was at $465, up 55% in less than 10 days. Although the prices fell to climb back to this level in mid-December, in June 2016, BTC price surged above $760.
Currently, we are trading above $9,600, barely in the green after taking a tumble over the weekend which came after the digital asset kept above the important psychological $10,000 level for a total of five days.
Now, it is to be seen how high this golden cross will take Bitcoin and how soon. With, reward halving coming in May 2020, less than three months away, it would be interesting to see a new two-yearly high.