BlocksInform
Bitcoin () and Wall Street baseline, s.
A gold cross occurs when the 50-day moving average (sma) of the value price exceeds its 200-day moving sma, producing a cross on the price graph. Given that moving averages are retrospective indicators, the signal only tells us that short-term market gains outweighed long-term gains. Nevertheless, chart analysts and traders see it as a precursor to higher long-term prices.
"the winds of change have begun to blow with the growing probability of bullish golden crosses in the near future", valkyrie analysts recently noted in a newsletter, referring to the imminent crossing on bitcoin's daily and.
Bitcoin will probably see its first gold cross since September 2021 within the next week or so, depending on the tradingview graphics platform. All the while, the s.
The Gold Cross's concomitant appearance on Bitcoin and s. Bitcoin has evolved as a macro asset since the beginning of 2020 and tends to evolve somewhat in line with the s.
Traders, however, should note that while major Bitcoin rallies often begin with a gold cross, not all gold crosses lead to a major rally.
The white line is the 200-day specialized area and the other is the 50-day specialized area. (TradingView/CoinDesk) ((TradingView/CoinDesk))
Bitcoin has witnessed eight gold crosses so far, three of them, confirmed in September 2012, Oct 2015 & May 2020, were just getting ready, anticipating at least a one-year bull market in which prices have recovered from 100% to 350%, The TradingView information is displayed.
On a different side, Silver Cross of July 2014, July 2015 and February 2020 were bull traps as the cryptocurrency crashed violently into a crossroads of death in the following weeks/months. The death cross is contrary to the golden cross and represents a bearish change in the long-term trend.
The cryptocurrency has experienced a significant increase in prices after the April 2019 and September 2021 gold crosses. But those earnings were short-lived. (TradingView, CoinDesk)
The other two golden crosses, formed in April and September 2019, were not determined, as prices increased significantly over the next two months, only to fall into a death cross.
The S&P 500's past data paint a similar picture. The index has been marked with 52 gold crosses since 1930. In that time, stocks rose in the following year 71% of the time, according to a MarketWatch report quoting Dow Jones Market data.
So, the Golden Cross does not appear reliable as an autonomous bullish indicator and should be read together with other factors, principally the politics of the Federal Reserve, who becomes less and less aggressive every month that goes by.
As expected, the central bank cut its interest rate by 25 basis points on Wednesday, bringing the benchmark cost of borrowing to the new range from 4.5 per cent to 4.75 per cent. At the press conference following the meeting, President Jerome Powell acknowledged that "inflation has moderated somewhat" while at the same time minimising the risk of economic recession induced by the tightening, encouraging risky assets.
According to ING analysts, the Fed is likely to deliver another 25 basis-point increase in March and then pause the rate-hike cycle that rocked financial markets last year.
