Bitcoin shows highly bullish ‘golden cross’

There are two technical signals that anyone who reads a stock market chart should know, namely a ‘death cross’ and a ‘golden cross’. Whenever you see one of those two signs in a stock or a cryptocurrency, you can assume that classic investors will either take their profits and sell (in the case of a death cross), or increase their purchases (in the case of a ‘golden cross’).

The golden cross is formed when the 50-day average rises above the 200-day average on any chart. Investors see this as a very bullish signal because it means that the short term buying has caught up with the long term buying.

#Bitcoin just made a ‘Golden Cross’
50 DAY MA crossed the 200 DAY MA.

Bullish! 🚀 pic.twitter.com/kw24sYzolQ

— Bitcoin Archive (@BTC_Archive) October 30, 2023

March 2022

Bitcoin formed a death cross in March 2022 after which the price fell to a bottom of $15,000. Since then, the price has been steadily moving higher until it suddenly went up 30% in the last two weeks.

George Tung, analyst for website The Street explained:

“Now we have come full circle (with this) golden cross, and this one may last all the way until 2025,”

“This one could go all the way. We may not have any more stops until the end of 2025. Golden crosses are good, two moving averages, a shorter one and a longer one … this is very good.”

“According to this, the next base is going to be quite high. It’s projecting anywhere from $50,000 to $70,000, and that could be by the end of this year. If we do get a spot bitcoin ETF approval sometime in November, I have no doubt bitcoin can skyrocket upwards towards the 40s, and we may end up in the 50s by the end of the year.”

Fake tweet

George of course refers to an approval by the American stock exchange watchdog SEC of a Bitcoin exchange traded fund.

When a fake tweet was sent a few weeks ago that led investors to believe that such an ETF had been approved, the price of Bitcoin rose 10% in just a few hours (only to sell off later again).

So if it actually happens later this year, analysts expect a rush into Bitcoin by investment banks.

maksimka3738 / Depositphotos.com