- A golden cross, a possible bullish indicator, has occurred on the weekly Bitcoin chart after a 3-year absence
Bitcoin just had a golden cross on the weekly chart for the first time since May 2016, which is approximately 3.5 years ago. A golden cross is a bullish sign for the crypto space. Indeed, the last time Bitcoin had a golden cross on the weekly chart it marked the beginning of a major bull run that eventually took Bitcoin to its all-time high of USD 20,000 in late 2017.
A golden cross is when a short period moving average of Bitcoin’s price moves above a long period moving average. In this specific case, the 50-week moving average has moved above the 100-week moving average. Equivalently, the price of Bitcoin over the past year is higher than the price of Bitcoin over the past two years, which is an indication that market conditions are improving.
However, a golden cross is a lagging indicator, meaning that it just confirms a trend that is already prevalent. That being said, this golden cross is still positive news, and oftentimes heralds a bull market in the short to medium term. Only time will tell, but another positive factor is that the Bitcoin block halving is coming in May 2020, which is only about five months away.
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