Settle Up. Bitcoin Passed the Golden Cross By DailyCoin
- A golden cross is a bullish indicator for the cryptocurrency market.
- After market sentiment became positive, the support level was at $40,000
- Bitcoin’s gains have been significant in the past after an event called a “golden cross”.
Bitcoin’s fluctuations are reflected in the market. Each move of the king token is mirror by altcoins which changes the market sentiment. Still, negative news in the market is no longer highly detrimental to Bitcoin’s price. The “golden cross”, Bitcoin’s bull indicator, flipped the market trend on September 15th, prompting additional positive discussion on Bitcoin’s price.
Another Golden Cross
Historically, both death and golden crosses imply either a negative or positive outlook for Bitcoin’s price. However, traders are bullish on the “golden cross” event because it shows that Bitcoin’s price has been extending upwards. Moreover, analysts suggest the “golden cross” will help consolidate a price floor above $40,000, which could not be visited in the foreseeable future.
Dylan LeClair suggests the indicator is nothing but a symbol of Bitcoin’s momentum. Although the indicator is irrelevant for traders, it can symbolize a catalyzing upward move to reinforce Bitcoin’s positive outlook. On August 9th, amind the prospect of a “golden cross” formation, Rekt Capital noted the previous death cross could be invalidated, building a new “re-accumulation on the macro-scale”
In the short term, the “golden cross” doesn’t account for any significant Bitcoin upswings. Truly, Bitcoin could stagnate in the coming days as historical data posted by Bitcoin Magazine shows, Bitcoin’s 30 day return is -7%. However, the 180 day return shows a very bullish trend with an average 40% rise and 54% increase in media.
On The Flipside
- The current “golden cross” can be a fakeout, resulting in a “death cross” if volume and sentiment don’t persist.
- A surge in retail investor interest can help the “golden cross” indicator fulfill the prediction of strong upward momentum.
Liquidity Makes Things Less Stressful
Trading indicators such as death crosses were more impactful for Bitcoin due to the lack of market liquidity. However, neither death nor golden cross will heavily impact Bitcoins’ price in the short term as in the previous years because the trading volume has increased and volatility triggers are not as sudden and impactful in the market.
The 2021 high of $65,000, which was followed by a death cross, did not provoke similar bear market outcomes because liquidity could not impact Bitcoin’s price entirely. Market predictability is still possible, and can lead to fakeouts. This was evident in 2019, 2020, and 2021 when mixed signals were provided. Investors and traders don’t always focus on one indicator when making final market predictions.
Bitcoin saw a market selloff of 8.8% on September 20, as regulator concerns about the stability and viability of cryptocurrency increased. Bitcoin’s activity shows that technical indicators including the golden cross are not accurate in the short term as the total market capitalization has lost more than $150 billion since the golden cross event. As of this writing, $1.9 trillion is the market capitalization.
What are the reasons to care?
The cryptocurrency and Bitcoin markets remain highly volatile, regardless of how technical analysts do. The market sentiment must also be considered when analysing trading indicators. The “golden cross” can mean many things, and no analyst can be sure of what can happen if a piece of negative news hits the market.
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
With just one click, you can unsubscribe at any time.