Crypto trader and YouTuber Lark Davis reports that Bitcoin (BTC) is showing a huge bullish signal.
In a new video, Davis explained to his 432,000 YouTube subscribers that Bitcoin is forming a “golden cross,” a technical event that is seen by many traders as a sign that rallies are coming.
“This happened. Now it’s official, confirmed. Bitcoin has a golden cross. This is, of course, the intersection of the 200-day moving average with the 50-day moving average. It’s definitely nice to see that.”
Davis also took a look at the history of golden crosses in Bitcoin to see if the event is a reliable bullish indicator. According to the crypto trader, when BTC last saw a golden cross in May 2020, it rallied 700%. Another golden cross in April 2019 saw BTC rise 200%, while in September 2015, Davis started a “non-stop mega bull rally” that pushed the price of the leading cryptocurrency from $300 to $20,000. told.
The trader also viewed BTC’s first golden cross in February 2012, after which the leading cryptocurrency rallied more than 22,000% in the following months. However, Davis added that a golden cross formed in March 2020, two weeks before the end of the Covid-19 pandemic, does not necessarily guarantee upward momentum.
“You wouldn’t expect something like this in TA (technical analysis)… [Covid], was an unexpected macro event that brought the price down, so this golden cross failed to rally big, but it was because of an external event that occurred.”
Davis added that another golden cross occurred in July 2014, which he considered short-lived as the price of BTC dropped from around $600 to $150.
“We got a little golden cross. This resulted in a short-lived enthusiasm for the market, followed by a 75% drop in Bitcoin price.”
As the analyst stated, the golden cross is one of the formations frequently used in technical analysis. Many investors interpret the golden cross as one of the clearest signs of a bull market. However, as Davis emphasized, the golden cross model can sometimes yield unsuccessful results. Therefore, it is always useful to check other signals and indicators before trading.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.