Crypto
Home›Crypto›Bitcoin›Bitcoin triggers golden cross on daily chart
Bitcoin triggers golden cross on daily chart
The signal, which occurs when the 50-day average rises above the 200-day average, has historically produced a 250% average return over the 12 prior full-year outcomes and only a 24.9% average gain over three months when data was available.
Bitcoin’s daily chart has flashed a “golden cross,” a technical setup that occurs when the 50-day simple moving average moves above the 200-day average, suggesting short-term momentum may be overtaking the longer-term trend, according to CoinDesk.
CoinDesk notes that the crossover has appeared 12 times in bitcoin’s history, but its performance as a standalone timing tool has been mixed.
In the cases where only full-year outcomes could be measured, just three of the 12 crosses remained valid for a full year, producing an average return of 250% over those 12-month periods, while the nine other instances with three-month data showed a smaller average gain of 24.9%.
CoinDesk also points out that golden crosses have been followed by premature bull traps three times as often as they have preceded multi-year rallies, and that bitcoin was trading around $78,650, down 0.6% since midnight UTC at the time of writing.
Latest closeBitcoin $78,714.67 ▼0.5%