Bitcoin (BTC) price has reached a very notable milestone and it is a milestone that investors usually view as very positive for the future.
Bitcoin price has formed a so-called “golden cross” on the weekly chart for the first time in its history.
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Bitcoin makes a weekly golden cross for the first time
A golden cross is the intersection of two so-called Moving averagesor moving averages on the price chart.
The indicator is called a golden cross because it follows a rise and may indicate further rises in the future.
Although this overshoot has already been seen on the daily chart of Bitcoin price, this is the first time in Bitcoin history that this has happened on the weekly chart.
More precisely, it is the intersection of the 50 weeks simple moving average (SMA) and the 200-week SMA.
ALERT: Bitcoin just confirmed its FIRST weekly golden cross pic.twitter.com/P2hK3TysCf
– Game of Trade (@GameofTrades_) January 16, 2024
Bitcoin price indicators are not a guarantee of future development
The opposite of a gold cross is called the death cross. This is an intersection of two moving averages that follows a decline and indicates possible further declines.
However, these are not foolproof indicators. They are so-called “remained behind' or delayed indicators. They are based on average prices in the past.
These crossovers only occur after a sharp rise or fall and therefore the trend is not guaranteed to continue.
This golden cross appears after Bitcoin rose more than 70% at the end of 2023. The death cross on the weekly chart appeared in early 2023 when the market was actually just beginning to recover from its lows.
The question, therefore, is whether this new crossing is a sign of further uptrend or an impending trend reversal.
This is not the same golden cross that Crypto Insiders recently reported on. Then it was a crossover between the 50-period SMA and the 21-period SMA Exponential moving average (EMA) on the three-week chart.
That was also a very rare signal. According to the analyst who noticed the pattern, the last time this crossover occurred was eight years ago, in 2016.
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