Bitcoin Just Formed a Golden Cross, Restoring Faith in A Crypto Bull Run

Tony "The Bull" Severino

5 years ago

3 mins read

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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.

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

— MS📈 (@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.

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

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.