Bitcoin was trading between $29,000 and $29,100 early Monday after a mild five-day slump and a month down 4.26%. But the leading cryptocurrency’s price tumbled at a level high enough to flash the bullish charting signal after March and June’s big pumps.
As Bitcoin price lazily range-traded amid unprecedented low volatility late last week, its moving averages over different time ranges began to shift. Just briefly, the 50-day moving average crossed over the 200-day moving average. That’s what charting specialists among day traders call a golden cross.
Bitcoin Price Charts Rare Golden Cross Pattern
Golden crosses are bullish indicators. They suggest recent price action has deviated so far from the 200-day average that the market is reevaluating the floor price level. When this happens with Bitcoin, it can lead to bubble-like melt-ups.
The BTC 50-day moving average has been riding the 200-day MA close since November. But it finally broke above the slower moving average on August 4. Since then, Bitcoin’s 50-day moving average has fallen and given some space back to the longer trend.
A golden cross of the 50 and 200-day moving average for BTC has only happened twice before! This is the third golden cross of this kind in the crypto’s entire history as a traded asset.
A Long-Term Bullish Trend Reversal Signal
Both previous Bitcoin golden cross patterns preceded significant price run-ups for BTC to new all-time highs. The first one happened in early 2016 and signaled the 2016 – 2017 bull run.
The second was in the second half of 2019 and preceded the 2020 – 2021 bull run, so it’s a long-range indicator. If the current signal is portentous, it could still be some months before the rally it will have portended begins.
That means investors still have time to plan their accumulation strategy.
Both golden crosses happened near the Bitcoin cyclical price bottom. The first one, in 2016, happened some months after the bottom, and the second one in 2019, a few months before the bottom.
Bitcoin’s price has made some major strides in recovering in 2023, but it remains below 50% of its previous record high.
Crypto investors who just bought and held BTC massively outperformed crypto hedge funds in 2023.
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