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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.

Reported · Written up by our desk · Bitcoin

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 $83,386.92 ▼0.1%

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