Golden Cross Approaches and JPEGs Come to Bitcoin

Feb 3, 2023 • 8 Min Read

Golden Cross Approaches

The golden cross is a commonly used technical indicator. It is characterized by the intersection of two moving averages, where a short-term average crosses above a long-term average. The most commonly used moving averages are the 50-day and 200-day. This crossover pattern is widely interpreted as a signal of a potential trend reversal from bearish to bullish, suggesting an upward momentum in the asset's price.

As demonstrated by the chart below, bitcoin’s 50-day SMA is rapidly approaching the 200-day and is likely to materialize next week, if not over the weekend. This technical indicator may trigger the entrance of momentum traders into the fold. 

The video in this report is only accessible to members

Bitcoin has experienced 8 golden crosses since its inception. We will dig into the numbers below, but visually we can ascertain that most instances of a golden cross have preceded favorable returns across most timeframes. Most occurred at critical long-term inflection points, and only one of these instances would be considered a bearish countersignal.

The video in this report is only accessible to members
Below are the historical forward returns across both short and intermediate timeframes. Save for the short-term returns following the Golden Cross leading up to the COVID crash and the ...

Unlock this page with a FREE 30-Day Trial!

*Free trial available only on a monthly plan

Reports you may have missed

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 1/1

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In