Even after Bitcoin's precipitous drop to the $9,400 level, the biggest cryptocurrency by market cap still managed to print a relatively rare golden cross on its daily chart. According to YouTube blogger The Moon (Carl Eric Martin), this is a sign of "shifting bullish momentum."
A rare buy signal
Golden crosses are formed when the 50-day MA of a certain asset moves above its 200-day MA. They show that the market is gaining bullish impetus.
The last time this buy signal appeared on the daily chart was in April 2019. It was followed by a 175 percent price rally in Q2.
According to MMCrypto, the bulls need to 'fasten seatbelts' since this golden crossover is even more bullish than the previous one.
Not out of the woods
It is worth mentioning that golden crosses usually occur when the market is already in a full bull mode, which means that this is a lagging indicator. Hence, it's not reasonable to try to predict future prices moves solely based on this bullish crossover.
Moreover, there is a need for strong buyer demand for the BTC price to remain above its 50-day MA. Otherwise, it could witness a painful correction.
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