- Bitcoin’s upcoming “golden cross” indicates potential bullish momentum by indicating short-term price trends exceeding long-term ones.
- Bitcoin has made a remarkable comeback, with its price rising 30% in just two weeks. This rise took the price of Bitcoin above $ 35,000, which it reached for the last time in May 2022.
- The crypto market is eagerly awaiting the upcoming golden cross, driven by factors such as the anticipated US-based spot ETF launch, growing interest in Bitcoin as a safe-haven asset, and the Bitcoin halving event planned for 2024.
Bitcoin is approaching the Golden Cross: Why is this event important for Bitcoin? Effects of Golden Cross on Bitcoin in historical events!
Bitcoin Heads Toward a Golden Cross
The upcoming “Golden Cross” for Bitcoin indicates potential upward momentum as it signifies short-term price trends surpassing long-term ones. This indicator often suggests the possibility of a bull market. Bitcoin (BTC) has experienced nine “Golden Crosses” in its history, each followed by varying degrees of upward trends.
Apparently, this indicator demonstrates the strengthening of bullish momentum by having the 50-day Simple Moving Average (SMA) trend upward and cross above the 200-day SMA.
However, current figures indicate that the 50-day SMA stands at $27,714 and is steadily increasing, while the 200-day SMA is reported at $28,174, as per the TradingView charting platform.
In recent weeks, Bitcoin has undergone a significant turnaround, with its price surging by 30% in just two weeks. This increase pushed Bitcoin’s price above $35,000, a level it last reached in May 2022.
Golden Cross: Historical Trends and Expectations
Bitcoin has seen nine Golden Cross events in its history. Three of them, which occurred on July 11, 2014, July 15, 2015, and February 19, 2020, were invalidated by the emergence of Death Crosses within three months, leading to significant bearish trends.
Other Golden Cross examples were followed by varying degrees of upward trends that led to substantial gains. Investors who held long positions after such events saw triple-digit returns on their investments over the course of a year, as in May 2020.
Interestingly, after the Golden Cross in September 2021, Bitcoin reached its all-time high of $69,000 within weeks before entering a Death Cross period just three months later.
Meanwhile, the crypto market is eagerly awaiting the Golden Cross, attributed to factors such as the expected launch of a U.S.-based spot ETF, increased interest in Bitcoin as a safe haven asset, and the scheduled Bitcoin halving event in 2024.
