Popular InvestAnswer channel in the crypto world, bitcoin touched on the potential intersection of two key indicators of price. The analyst is of the opinion that this intersection could result in explosive movement.
According to the channel’s host, Bitcoin may show a “golden cross” pattern in the coming days. As Koinfinans.com reported, this move is very similar to the chart of the S&P 500.
A gold crossover occurs when a short-term moving average (MA) breaks above a long-term moving average.
“Let’s look at the golden cross (sometimes referred to as the golden cross)… Depending on Bitcoin’s trajectory, we’re getting close to one, probably in about six days, maybe a little bit less.NEWS CONTINUES BELOW
The golden cross occurs when the green line, the 50-day moving average, crosses the red line, the 200-day moving average. In the past, Bitcoin’s big rallies, big, big rallies, always started with a golden cross.”
However InvestAnswers The server of the channel also stated that there is a 20% chance that this golden intersection will fail, specific to Bitcoin.
“You have to keep in mind that not all gold crosses result in a rally. Around 78-80% of these crossovers resulted in rallies. These are February 2012, October 2015 and May 2020. All of this was in the pre-bull run phase of at least a year to 18 months, and prices had at least doubled, or rose 350% or much more.
On the other hand, the golden crosses in July 2014, 2015 and February 2020 were bull traps and the cryptocurrency then went down.”
The analyst concluded his views by saying the following about the possibility of a rally following the upcoming gold cross.
“Based on this golden crossover and previous chart for Bitcoin that will appear in a few days, there is a good chance maybe, more than 50% – I would say there is at least a 60%, 65% chance that this will lead to a good rally.”