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The bullish Bitcoin rally of 2020 has helped push the leading crypto asset out of a six-month downtrend and two-year-long bear market.
The buying pressure from FOMOing crypto investors just caused a golden cross to occur on price charts, which could very well signal the start of a new uptrend that could take Bitcoin to a new all-time high.
Bitcoin Forms Golden Cross, Is The Next Crypto Market Bull Run Brewing?
Since the start of 2020, Bitcoin is up over 40% on the year, making it among the top-performing assets of the year thus far, next to the likes of Tesla – which is currently making waves in the finance world for its Bitcoin-like meteoric rise.
The bullish momentum across the crypto space has also caused altcoins to break upward out of downtrend resistance, further helping to propel Bitcoin higher.
Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun
Oftentimes when altcoins are rallying, the value of Bitcoin rises as more and more crypto investors buy Bitcoin to trade into other altcoins. It’s part of the reason that Bitcoin price was able to reach the $20,000 all-time high it set at the peak of the crypto bubble.
That FOMO buying of Bitcoin has helped the leading cryptocurrency by market cap rally from lows in the $6,000 range to a local high of over $9,800 as of the time of this writing.
The rally has also caused Bitcoin to form a golden cross of the 50-day moving average and the 100-day moving average. A golden cross is a powerfully bullish signal that tells investors that the asset is healthy and may be primed for an extended uptrend in the days ahead.
G O L D E N C R O S S
Dips are for buying.$BTC pic.twitter.com/5I776BwWbJ
— Mohit Sorout ? (@singhsoro) February 6, 2020
A golden cross occurs when a short term moving average like the 50-day moving average, rises above a longer-term moving average like the 100-day or 200-day moving average, for example.
The longer the timeframe the moving average, the more significant the cross is. This suggests that although the current golden cross of the 50-day moving average and the 100-day moving average, while extremely significant, doesn’t hold as much weight with investors as it would if Bitcoin crossed the 50-day moving average above the 200-day moving average.
Related Reading | Bitcoin Transaction Values Soar To Highest Level Since Crypto Bubble
Weekly timeframes also trump daily timeframes, so Bitcoin clearly has a long way to go, however, all uptrends start first with a cross of the shorter-term moving averages – so this could just be the beginning of the first ever cryptocurrency’s extended upside into a new bull market.
Golden crosses are incredibly important and could be the final signal for crypto investors that “buy the dip” season is back in effect.
Featured image from Shutterstock
