Bitcoin may achieve a golden cross on the weekly chart for the first time since May 2016, which was 3.5 years ago, and this is a highly bullish sign. The last time a golden cross occurred on the weekly chart, Bitcoin rallied from around USD 500 all the way up to the all-time high of USD 20,000 within 1.5 years.
A golden cross occurs when the 50-period moving average moves above a 100-period moving average on a market chart, and in this case, the period is 1 week. Essentially, a golden cross will happen when the price of Bitcoin over the past year on average is above the price of Bitcoin over the past two years on average.
In this case, Bitcoin just has to rise a little more, or hold steady for the next month, and the golden cross will happen. That being said, sometimes golden crosses are quickly followed by the death cross, where the 50-week moving average drops below the 100-week moving average, if the market is indecisive. Therefore, it will be important to watch how strong the golden cross is, that is, how decisively the 50-week moving average moves above the 100-week moving average. If it is a decisive move it could herald a long term rally.
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