CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$27,997.00
  • ethereum
    ETH$1,911.65
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Guides » What is a Golden Cross and Why Everyone Thinks Bitcoin Will Skyrocket After It Takes Place?

    What is a Golden Cross and Why Everyone Thinks Bitcoin Will Skyrocket After It Takes Place?

    Author: Benjamin Pirus

    Last Updated Jun 24, 2020 @ 16:42

    After months and months of bear market despair, the crypto space has perked itself up over the past several weeks, seeing renewed upward exuberance. As a result of such price action, crypto’s largest asset looks like it’s headed right toward a dominant bullish chart pattern, the Golden Cross.

    A historically bullish pattern in technical analysis, the Golden Cross occurs when a shorter term moving average (MA) crosses above a longer-term MA. Perhaps two of the most commonly used moving averages for this pattern are the 50-day and 200-day MAs.

    At present for Bitcoin, the daily chart 50-day MA looks like it is headed toward the 200-day MA for a potential crossover in the not-so-distant future.

    golden_cross1-min

    Watch Out For Fake-Outs

    Golden cross patterns such as these can sometimes indicate longer-term trends ahead and can be useful in longer-term trend outlooks. Bitcoin also had a Golden Cross near the end of the last bear market cycle back in 2015, indicating on the 2016 – 2017 bull run. Gaining steam during the upward trend, the 50-day MA looked to hold above the 200-day MA as a type of support.

    golden_cross2-min

    It is, however, essential to note the potential for fakeouts, as with almost any indicator or price pattern. As seen in the chart above, the chart painted two Golden Cross events back in 2015. The first appeared to be a fakeout, with the 50-day MA temporarily crossing back below the 200-day MA, before continuing back upward again.

    After the fakeout and second Golden Cross, Bitcoin had a spike up to about $500 and then came down to the 50-day MA, seemingly holding support near the indicator around roughly $300 per bitcoin. The 50-day MA did not cross back under the 200-day MA until after Bitcoin had hit its all-time high around $20,000 (December 2017). As a long-term buy signal, the second Golden Cross obviously would have yielded tremendous returns in this example. Although, as mentioned, false signals do occur, and a bull run of that magnitude obviously is never a guarantee or likelihood.

    And There Comes The Death Cross

    In addition to the Golden Cross, evaluating various other circumstances, observations and conditions can be imperative in developing a more well-rounded opinion on price action and future speculation.

    golden_cross3-min

    After Bitcoin’s all-time price high, the 50-day MA eventually fell back down through the 200-day MA in a death cross, which took place when Bitcoin was equivalent roughly $10,000, signaling the coming-up bear market the crypto space has faced over the past year. Some say we are not over that bear market yet.

     

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    Tags: Bitcoin Bitcoin (BTC) Price
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Benjamin BJ Pirus
    More posts by this author

    BJ is a full time writer, editor, and trader in the cryptocurrency space. He has written countless professional articles for numerous news sites such as Forbes, and other interested parties in the crypto space. He is also a trader, staying up to date with the crypto markets constantly, and dabbling in traditional financial market trading occasionally. Contact Ben: LinkedIn

  • bitcoin
    BTC$27,997.00
  • ethereum
    ETH$1,911.65
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    The Weaknesses of Ethereum VS Modern Blockchains: Interview With Radix

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Institutions Intend to Buy Bitcoin in Late 2023: Interview With CryptoQuant

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    Why Didn’t ETH Dump After Shanghai? Interview With Nansen

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is PEPE Coin? Is This the Next Huge Memecoin?

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    What is the Ethereum Shanghai (Shapella) Upgrade? Everything You Need to Know

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!