Bitcoin has just confirmed a new golden cross on its daily chart, as noted by prominent crypto advocate and BuffettsBooks.com founder Preston Pysh.
This means that the flagship cryptocurrency's 50-day price average has eclipsed the 200-day average.
Advertisement
Bitcoin Golden Cross (200DMA - 50 DMA). pic.twitter.com/ybnQIoZ5uM
— Preston Pysh (@PrestonPysh) September 14, 2021
The golden crossover shows that the overall trend has shifted from bearish to bullish in spite of intraday fluctuations.
Crypto Market Prediction: Can XRP Hit $4.20? Bitcoin Eyes $130,000 All-Time High, Dogecoin ETF Could Spark Meme Coin Euphoria
Bitcoin Price Reacts to Fed's Rate Cut, XRP Futures Options to Go Live on CME, Top Trader Moves Ethereum to Binance — Crypto News Digest
Critical Chrome Exploit Could Drain Your Crypto, CTO of French Hardware Wallet Giant Warns
US XRP ETF Launch Rockets to $24 Million in First 90 Minutes
Tue, 09/14/2021 - 15:04
SEC Chair Gensler Claims Stablecoins “May Well Be Securities”
While some believe that the golden cross might supercharge another rally, it is worth noting that it often ends up being a lagging indicator given that it merely reflects price moves that have already taken place.
Hence, the reality is that such crossovers have very little predictive power.
The same goes for death crosses that are formed when the coin's 50-day price average falls below the 200-day average.
For example, Bitcoin printed one on June 21, just one day before the price of the crypto king actually reached its local bottom of $28,600.
On Sept. 2, the top coin went on to reclaim the $50,000 level for the first time since May 15.
Advertisement
Dan Burgin
Vladislav Sopov
U.Today Editorial Team