Bitcoin Golden Cross: Everything You Need To Know About The Bullish Signal

Tony "The Bull" Severino

1 year ago

3 mins read

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Today, the talk across the crypto market is that Bitcoin price is forming a Golden Cross – a potentially bullish signal according to conventional knowledge. But this is the cryptocurrency market, and anything is possible given the potential for sudden, sweeping regulation, hacks, or worse.

With the Golden Cross now here, we are looking back at the history of the signal, and breaking down exactly what it means and how this could impact Bitcoin price action in the days ahead.

Bitcoin Price Forms Eighth Ever Golden Cross

Forget the digital gold narrative. All across crypto Twitter, online forums, and anywhere else cryptocurrency community chatter exists, the discussion is centered around the Golden Cross that’s forming on the BTCUSD trading pair.

According to Investopedia, a Golden Cross “occurs when a short-term moving average crosses over a major long-term moving average to the upside.” It is “interpreted by analysts and traders as signaling a definitive upward turn in a market,” the description continues. Specifically, this Golden Cross refers to the 50-day moving average crossing above the 200-day moving average.

Because this could be the definitive upswing in Bitcoin price that takes the cryptocurrency to its potential cycle peak, all eyes are on the signal. But not everyone knows what to look for, or what it means.

In the chart below, the inverse signal – the Death Cross – failed to produce the expected results, so there is no telling if the bullish version confirms either. Looking back at the history of the two signals, the situation becomes even more mixed.

The Golden Cross is here | Source: BTCUSD on TradingView.com

Everything You Need To Know About The Bullish Signal

The leading cryptocurrency by market cap has had eight Golden Crosses and seven Death Crosses in its short history, according to the Bitstamp chart.

The Golden Cross to start the 2013 bull market only ever Death Crossed when a bear market finally began, but not before a quick Golden Cross/Death Cross fake out.

After the cryptocurrency bottomed in 2015, another fake out situation where the cryptocurrency Golden Crossed, then Death Crossed, then Golden Crossed again. The last signal brought Bitcoin from under $500 to $20,000. A Death Cross also started the 2018 bear market, until a Golden Cross took the cryptocurrency out from bear market lows.

Could this be the last bullish signal before the peak is in? | Source: BTCUSD on TradingView.com

In late 2019 and into early 2020, consolidation resulted in more mixed signals. It started with a Death Cross in October 2019, then, like the 2017 bull run, a Golden Cross faked out into a Death Cross, only to then Golden Cross again and take Bitcoin from $4,000 to $65,000. After such a move, it isn’t surprising to see why investors might be skeptical of another Golden Cross yielding similar results.

After the recent local top at $65,000, Bitcoin formed another Death Cross, but it didn’t produce much downside. With a Golden Cross back, the market is now nervous of another fake out type situation, but also fearful of missing out on potential upside.

In the past, Bitcoin has been the underdog, climbing its way to the top any way it could against all odds. Today, things are very different, and more sophisticated investors are now involved – including institutions, corporations, hedge funds, and more.

With smart money finally involved in the crypto space, following a traditional market all-in signal like the Golden Cross could be the more wise play.

Will the Bitcoin golden cross ultimately be…

— NewsBTC (@newsbtc) September 15, 2021

Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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.

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