Bitcoin Prints a Golden Cross for the First Time Since 2015, Time for a Bull Run or to Take a Dive?
Up by 4.54 percent in the past 24-hours, Bitcoin today surged past $5,600, going to $5,616 at one point on Bitstamp. Since then it has taken a drop as at the time of writing, BTC has been trading at $5,543.
As the leading cryptocurrency made its way upwards, altcoins also turned green and the entire market cap went over $184 billion, adding $8 billion since yesterday.
Golden Cross Forms On Bitcoin Chart Once Again
This is the first time that golden cross has happened after 2015. Could this be a major indicator of the bull cycle?
It could very well be but what’s worth noting here is the real possibility of drop down as the last time it has occurred exactly at the high of the move that had BTC going all the way to 61.8 retraces.
Crypto analyst, Magic Poop Cannon shares the impact this golden cross could happen on the market in his latest analysis. He explains about the current market movement, the rally we saw to the weekly 50 MA and breaking above it. But as we reported it has come back down below the weekly 50 MA. From here, Magic is expecting the price to close below the moving average and from there the creation of a head and shoulders pattern.
“So, we did get the golden cross, and we did get the spike up like we saw in 2015. Now, we need to see if price will ultimately return to the downside here. Personally, I'm expecting BTC to return to at least the 4200 range, and possibly even lower.”
Meanwhile, crypto trader and investor, Josh Ragers see at least $5,800 before BTC drops back below $5k as it slowly climbs, making higher lows.
Maximum pain scenario for $BTC:
– shoot through to $6000
– rest right above $6000, luring longs in
– dump back down to $4000s in 2 days
– have everyone scream "this is The End"
– slowly move back up
— Alex Krüger (@krugermacro) April 22, 2019
Economist and crypto trader, Alex Kruger says the pain trade for Bitcoin is higher as that is where “disbelief and hate” is. The chart according to him is bullish but not overextended and if BTC consolidates above $6k the market likely to “kiss $4k goodbye.”
However, given the fact that we have rallied 80 percent from the low Magic believes there is limited upside left as indicators are flashing sell signal and showing signs of exhaustion. In 2015, BTC had rallied 93 percent from the low and the market is similar in that movement.
As for the $6k mark, it took months for bitcoin to test and a breakdown below this area so it is “extremely” unlikely that BTC would just surpass it this time without going through “big failure” on its way up.