As of the time of this report, Bitcoin is trading at $10,157, following a bearish weekend in which the crypto asset plunged to as low as beneath $9,480, flopping by 8.76%. Before the upsurge, the price took the uptrend, gaining the $9, 800 support while trading volume was steadily was on the rise.
Traders heaved a little sigh of relief as the Golden Cross was formed on the crypto asset daily chart recently. This time, it calls for more attention as BTC started to outperform its daily averages since the 2019 rally.
Throughout the entire existence of pioneer crypto assets, Bitcoin, the Golden Cross has just been shaped on only a couple of events.
In two noteworthy occasions, which dated back to October 2015 and most as of late, April 2019, BTC formed the Golden Cross, the two of which were followed thusly by a rally.
The Golden Cross is a long term frame indicator in which a generally transient moving average crosses over a long term moving average appeared by a bullish candle pattern. On the turnaround, the death cross is a specialized chart pattern demonstrating the potential for a significant selloff.
In an ongoing analysis, it was noticed that ten golden/death crosses of 50MA intersections of 200MA were formed since 2014. In half of every one of these cases, BTC price didn’t encounter a prompt bull when the golden cross-shaped.
This might be since BTC has a few variables which impact its market price. Market instability factor which can cause sharp price changes inside minutes makes the crypto asset price expectation far-fetched.
The ongoing situation displayed by BTC is a conflict of bearish and bullish depictions as observed on a couple of indicators. A Golden Cross and the up and coming halving in May, likely recommend an approaching rallying, a fresh 2020 high and another ATH. On the other side, the bearish situation considers the exchanging tides while recommending that the price may take a further downturn.
A neutral sentiment founded on the BTC volatility fear and greed index is bringing about a mixed prediction on its market price, in which a rally or a downturn is a possible scenario.
BTC’s inflation rate is predicted to be 1.8% which will be lesser than Gold and USD, consequently when BTC’s upcoming halving takes place after May. This will prove the value of scarce assets like BTC, ranking it to digital gold.
In a historical antecedent, a Golden Cross was formed before the last halving which saw BTC price rising to its ATH while gaining a whopping 218% increase. This singular event has lingered on in the minds of traders who are optimistic that this similar scenario may play out again.
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