Bitcoin experiences Golden Cross - Something we haven't seen since October of 2015steemCreated with Sketch.

in bitcoin •  6 years ago  (edited)

Bitcoin just experienced a technical pattern known as a Golden Cross and it may be very good news for future returns.

Cool!

But, what's a Golden Cross?

A Golden Cross is a technical pattern that shows the 50 period moving average cross over the 200 period moving average to the upside.

Ideally both would be trending up as well.

An example of a Golden Cross can be seen here:

(Source: https://indicatorwarehouse.org/golden-cross-3-simple-strategies-for-trading-the-pattern/)

Why does this matter?

As you might have guessed from looking at the example listed above, this is often a very strong technical pattern.

It is often seen at the beginning of long bullish periods.

In fact, the last time bitcoin had one of these on the daily chart was October of 2015.

Check it out:

(Source: https://twitter.com/blckchaindaily/status/1120719065465741312 )

You may recall what happened next...

Bitcoin went on a major bullish run that lasted most of 2016 and 2017 with prices peaking in late 2017.

I would not be surprised if we are about to see the same thing play out again now.

If the timelines are remotely similar it would have the mania phase of this next rally happening at the end of 2020 or early 2021.

I think history is about to repeat.

Stay informed my friends.

-Doc

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The indicators continue to pile on to support a new trend! Without weaker hands to sell into the rallies, short sellers are becoming more hesitant to bet against it as well. I am hoping for some consolidation before even trying $6k!

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Me tool. Historically when prices experience a golden cross, there is a significant pullback immediately after as the moving averages don't tend to cross until after a big up move has already been made. However, that dip is where you want to buy for the longer term bull market.

Got my fingers crossed on the Golden Cross.

It's the 100% power up feature.

Thanks for explaining the golden cross formation. Very valuable information 👍

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I am thinking we dip very shortly here, but then after the dip we see about a 2 year long bull market.

I've been thinking the same thing. Maybe dip down to 4.8k then test the 6k for a little...then sky's the limit. At least I hope 😁

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Exactly the dip I am looking for as well. $4,300 would be even sweeter, but probably won't happen.

Well we may get that dip sooner than we thought! Bitcoin hit $4,900 a few minutes ago on the Tether news.

Yes but how long will it last? :D

Well if history repeats. Bitcoin had a golden cross before the one in October that occurred around May. Prices fell about 25% right after and it failed. Then when it happened again in October, it lasted until early 2018. What we are seeing right now might be that first attempt that often has a major price pull back first. Though that would be a great buying opportunity if history repeats.

😁👍😁

Does that mean you approve?

Nice! :)

Yep, should be good news going forward.

Cool, steem the moon. :)

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Well I am not sure about that. We need something of value built on here for that to happen it seems. It didn't follow bitcoin much on this latest bitcoin rally.

You waited for it, now is the moment to say it:

TO

THE

MOOOOOOOOOOOOOONNNNNNNNNN!

Eventually yes, but it may be a slow grind higher for a while.

I still wondering why so much money is going to come to btc

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Where do I start? It's an uncorrelated asset with asymmetrical returns. It has outperformed every major asset since it's creation. Basically, from a macro fund managers perspective, it would be irresponsible not to have at least a 1-2% exposure to bitcoin based solely on what I just said above. Custody has been one of the biggest reasons thus far why institutions are not in. That is slowly being remedied.

I heard that the next btc rally will happen when central banks start to buy btc masively. Do u agree with that?

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No. I don't think they will. Not for a long time anyways. The next rally will be driven primarily by institutions. Think pension funds, macro funds, etc. It's one of the few times where retail is in an asset before institutions. Plus when prices start going up retail will FOMO back in as well. I think we see bitcoin make new highs at some point within the next 2 years.

Wells, i hope you will right! Ty

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You and me both!

@remind-me on 1 Jan 2020 10:00

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That is also when the Tulip Trust supposedly becomes available...

Hey @yuriitonkov, I will notify you on January 1st 2020, 10:00:00 am (UTC)
Later! ( read more... )

Hi @yuriitonkov!
You asked me in this comment to create a reminder.
It seems the time has passed!

Let's go...

Which means we might be only months away of the next crazy jump in BTC price!!

I think we make new highs on bitcoin at some point within the next 2 years.

I was wondering what a golden cross was.
I've probably heard the term 20 times without actually knowing what it meant besides "bullish".

Haha, well now you know! :)

Hopefully it plays out remotely similar to what happened with the last one!