Bitcoin golden crossing promises the Moon in 2020 for its tireless bulls
Bitcoin has just produced a signal that has not been seen for a long time, and that may predict the start of a true new race to the Moon. The “Golden Crossing” appeared in the Bitcoin charts, regardless of the decline experienced by the currency in recent hours, bringing it closer to USD 9,600.
When the golden cross has made a presence in the history of Bitcoin, what has followed is a very short consolidation period, so that the price begins to escalate for several months. Having broken the psychological barrier of ten thousand dollars, in the past days Bitcoin was able to reach even further. The first cryptocurrency enthusiasts were amazed when the upper limit reached was marked at USD 10,500.
It was remarkable is the effort that the bulls made to keep Bitcoin above its previous resistance, now turned into support. The currency did not have the strength to hold over USD 10,000 and as recorded by TradingView, which monitors data from Gemini, Coinbase and Bittrex, just hours ago it was as low as USD 9,600.
The appearance of the golden cross seems to be confirming the bullish sentiment regarding Bitcoin. At the moment, the price gravitates around USD 10,100.
Bitcoin and the Golden Crossing
Some analysts warned him well in advance: the golden crossing of Bitcoin would be only days away. One of them is TradingShot, a trader who brings his studies to the crypto community that continually meets on the TradingView platform to follow the movements of Bitcoin.
On February 13, TradingShot published the chart shown below:
Although the central theme of his post was the “fair price of Bitcoin,” TradingShot had comments in the text regarding the coming halving event. In addition, he clearly cited the emerging formation of a golden cross that, if we project on the graph, should materialize between the 17th and 18th of this month.
In his opinion, what we could witness after the golden crossing of Bitcoin is that the bullish sentiment intensifies. This would contribute to the goal of USD 13,800 being realized in advance.
The golden crossing is not a phenomenon that is frequently seen. The previous one took place in 2019, on April 22. When the line that draws the moving average of 50 (fast) crosses up the path of the moving average of 200 (slow), what is produced is the so-called golden crossing, and is recognized as a bullish signal of the best .
Returning a little to the golden crossing of April, we can notice that on that occasion Bitcoin was located, approximately two months later, near USD 14,000. The price gain was plus or minus 164%.
In moments when Bitcoin decidedly approaches USD 10,200 (it is negotiated at USD 10,182 just now), we cannot think less that the golden cross is effectively acting as a catalyst for the premature or not rise of BTC.
Although the patterns in the graphics are repeated, a look of factors would have to match for things to happen just as it happened in April last year. But if so, in 60 days, shortly before or shortly after, Bitcoin will be around USD 27,000.
As if this were not enough, the halving will take place in May, adding pressure to expectations about the price of BTC that you have for those dates.
The predictions seem to match
For this year, we have already heard familiar voices predicting the new Bitcoin highs. Tom Lee, who had some time without getting his head off the desk, took advantage of January to expose himself several times and comment on the events and indicators that point to a rise in BTC in 2020.
Lee was interviewed by Emily McCormick for Yahoo Finance, whom he mentioned three important factors, according to his point of view, so that Bitcoin is appreciated in the months that follow: the halving event, the global health crisis that has caused the emergence of coronaviruses and geopolitical conflicts that negatively impact the American currency.
In the “Fast Money” program of the CNBC network, Lee would again refer to the cut in mining benefits as an influential element in the rise of Bitcoin in the short term. At the end of the month, on his Twitter account, the director of Fundstrat stressed that the currency had recovered its 200 moving average (MA200), which is considered the preamble of a period of price gains.
He had said this before in his conversation with Yahoo Finance, where he also forecast a 196% growth for Bitcoin during the first half of 2020.
Another well-known Bitcoin bull, Mike Novogratz, has also been encouraged to release figures, although not as specific as Lee’s. For the CEO of Galaxy Investment Partners, Bitcoin will be able to reach and even exceed the old highs this year, only that the period of time for that to happen extends it until December of the current year.
Like Tom Lee, Novogratz expects the decline in the availability of Bitcoin produced as a result of the nearby halving, along with other factors, will drive prices up.
Golden, or death
Just as the moving average of 50 rises above that of 200 to form the golden crossing, there is the inverse event, called “death crossing.” At the crossroads of death, the moving average of 50 crosses down the path of the MA200. When this happens it is an omen that lies ahead, not death, but a decline in the prices of the currency that feeds the graph with its data.
In the world of investments, it is often noted that “past returns are no guarantee of future returns.” That way it is remembered that in the markets nothing is certain, and less where what is traded are cryptocurrencies.
While there have been prolonged increases after a golden Bitcoin crossing, it does not mean that it will always happen that way. But love is blind, and the bulls already cool the champagne by the time BTC has reached the Moon again.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.