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“Golden” Bullish Bitcoin Price Signal: Are 5000% BTC Gains Ahead?

Avatar Tony Spilotro 7 months ago

While 2018 was most certainly a bear market for Bitcoin and crypto assets, 2019 has been mostly a bull market or at least the beginning stages of one. The latest in the growing list of signs the leading crypto asset by market cap is building a bullish foundation and will rise to new all-time highs, is a “golden cross” on three-day Bitcoin price charts.

The last time this occurred, was in February 2016, and from there, Bitcoin went on to bring investors a 4,900% return on investment. Could the same happen for Bitcoin once again?

Bitcoin Price 3-Day Charts Signals Golden Cross

Bitcoin price has just triggered a “golden cross” on its three-day price charts, and the entire crypto world is enthusiastic that this could mean that Bitcoin is about to begin a true bull run, and based on past experience, investors are rightfully excited.

A “golden cross” occurs when a shorter-term moving average, in this case, Bitcoin’s 50-week moving average, crosses above a longer-term moving average, or again with Bitcoin the 200-week moving average.

A golden cross is a powerfully bullish signal, and typically is a sign for investors that the asset is about to embark on a bull run. The opposite – a “death cross” – is a signal that a downtrend or bear market is ahead.

Following a long, arduous bear market, crypto investors are right to be enthusiastic about the bullish signal, but caution is necessary. Bitcoin in the past has formed a golden cross, only to then death cross, and then golden cross back once again before the last bull market truly kicked off.

Related Reading | NVT Ratio: Top Predicting Signal Hits Highest Peak, Is a 50% Drop Ahead? 

Because there is a chance this could happen again, and history has a way of repeating itself, investors should proceed with caution.

Last Golden Cross Brought BTC Holders 4,900% Returns

However, if the golden cross stands, and doesn’t do another infamous death-cross fakeout, Bitcoin could go on to bring investors returns that are typically unheard of in most asset classes.

Related Reading | Next Big Move For Bitcoin Price: Will The Infamous Golden Cross Fakeout Strike Again?

After the last golden cross in February 2016, when Bitcoin was priced at just about $400 per BTC, the crypto asset went on to bring 4,900% in returns as it peaked at $20,000.

A similar rise percentage-wise would put Bitcoin price above $500,000 per BTC, but could take years to achieve that. From the time that Bitcoin signaled the golden cross to the top of the hype bubble was roughly a year and a half, which might suggest that it will top in December 2020.

Given how massive the market cap of BTC would need to be to achieve such a number, seeing that type of return again is highly unlikely, but also given Bitcoin’s ability to surprise people, anything is possible.

Tony Spilotro

I'm Tony Spilotro. I’m an avid Bitcoin supporter and maximalist due to my distrust in society and concerns over privacy, but also a strong believer that XRP could end up being the most disruptive altcoin on the market. I’m an...

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