Bitcoin – Since the market started its current bear phase in March of this year, the crypto community has been divided on how it will proceed. However, there may be signs that the market is poised to enter into a bull run again.
The 30-day and 60-day moving averages of Bitcoin’s hash ribbon have formed a ‘golden cross,’ according to blockchain analytics company Glass node.
After crashing on Monday as a result of false rumors that Walmart will accept Litecoin for purchases at its department stores, Bitcoin has made a strong comeback on Tuesday, reaching $47,000.
All eyes are on the Bitcoin chart right now, as the world’s first and largest cryptocurrency is on the approach of creating a ‘Golden Cross’ on the daily chart for the first time, following a ‘Death Cross’ in June.
What is a Golden Cross?
A golden cross is a chart pattern that indicates the possibility of a strong rise. When a stock’s short-term moving average crosses over its long-term moving average, the golden cross shows on the chart. A death cross, on the other hand, indicates a negative price trend and can be contrasted with a golden cross. Technical analysts refer to a crossing of two key simple moving averages as a “Golden Cuross,” which occurs when the 50-day moving average crosses the 200-day moving average. Bitcoin’s 50-day moving average was $45,802 on Tuesday evening, while the 200-day moving average was $45,875.
Chartists view a Golden Cross as a lag signal of possibly significant gains in an asset. When the 50-day moving average (short-term bullish signal) crosses above the 200-day moving average (long-term bullish indicator), an asset class is likely to outperform in the medium term.
Bitcoin’s value surged five times and three times in the last two instances when it formed a ‘Golden Cross’ on the daily charts, according to technical experts. Bitcoin has seen seven cuross in its complete journey.
A Bitcoin Bull Run May Be in The Making
Historically speaking, a golden cross-like this is usually followed by a surge in prices of Bitcoin, meaning traders can start putting in their money in anticipation of the rise.
Hash ribbons predict when the price of Bitcoin will begin to rise, and a golden cross is a sign of the same. During Bitcoin price corrections, miners earn less and must sell their coins to obtain money. They also turn off machines to save money during certain times, which lowers the network’s total hash rate.
In essence, the hash ribbons end up demonstrating the market sentiments, giving experienced traders a way to predict the rise and fall of prices. And, as history has shown, when Bitcoin trade volumes and prices rise, so do the prices of other currencies.
Bitcoin appears to be the future of currency or at the very least an acknowledged store of value, with institutions adding it to their balance sheets and El Salvador making it legal cash. However, given the market’s high volatility, risk-averse investors are still unwilling to purchase Bitcoin, much alone any other cryptocurrency.
Bitcoin’s monetary policy is far more sound than any government’s since it is not governed by a central authority. The portfolio of Bitcoin is increasing day by day, there is one of the other advancements that the bitcoin investment is getting. People who had invested in bitcoin is seeing it as a major profitable investment with everyday surges and boom The word bitcoin has been all over with the pledging and multifield profit benchmarks it has set out.