This Crypto Asset Creates A “Golden Crossover” Following The S&P 500!

bitcoin and the S&P 500 is pretty close to reaching the “golden cross”, which is a technical bullish signal. A golden cross occurs when the price breaks above the 50-day SMA and the 200-day SMA. Moving averages provide a lot of information as they are retrospective indicators. As a result, it is possible to interpret both short-term and long-term forecasts. However, traders think that it makes more sense to interpret this signal in the “long-term”.

Valkyrie analysts recently cited the upcoming crossover on the daily Bitcoin and S&P 500 charts. “The winds of change have started to blow with the possibility of a bullish gold crossover in the near future,” the bulletin said.

Bitcoin will likely see its first gold crossover since September 2021 in the next two weeks. Meanwhile, the averages of the S&P 500 are on track to produce a golden cross on Thursday.

The simultaneous emergence of the gold cross in Bitcoin and the S&P 500 will motivate trend-following crypto traders. BTC has evolved as a macro asset since the beginning of 2020. As a result, it tends to move more or less in line with the S&P 500.

However, investors should keep in mind that Bitcoin’s major rallies often start with a gold cross, but do not always lead to a rally.

What Does Bitcoin Gold Cross Mean?

Bitcoin gold intersection

Bitcoin has had eight gold crosses to date, according to TradingView data. Three of these, confirmed in February 2012, October 2015, and May 2020, heralded at least one year of bull markets, with prices rising between 100% and 350%.

On the other hand, the golden crosses in July 2014, July 2015 and February 2020 were bull traps as the cryptocurrency fell violently to the death cross over the following weeks/months. The death cross is the opposite of the golden cross and represents the downtrend in the long-term trend.

The other two gold crosses in April and September 2019 were not decisive, prices rose sharply in the next two months but then entered the death cross.

According to ING analysts, the Fed is likely to raise another 25 basis points in March, followed by a break from the rate hike cycle that rocked financial markets last year. This will trigger a different outlook in the markets.

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