Bitcoin “Golden Cross” Confirmed – What Next for BTC Price?

cryptonews.com:

An important technical event just occurred in the Bitcoin market. For the first time in more than a year, Bitcoin’s 50-Day Simple Moving Average (SMA), now at $19,825 just moved to the north of its 200-Day SMA, now at $19,723. When the 50-Day SMA moves above the 200-Day SMA, technicians refer to this as a “golden cross” – a sign that there has been a meaningful positive shift in the market’s momentum. Tuesday’s golden cross is only Bitcoin’s seventh in the last 10 years.

Some analysts see a golden cross as a buy signal, or at least include it in the suite of technical and other indicators that they monitor when making trading decisions. Both the 50 and 200-Day SMAs are widely followed technical indicators by investors, hence a golden cross could potentially lead to higher buying pressure in the Bitcoin market, should it encourage more buyers to enter the market.

With the golden cross now confirmed, many investors are asking whether this is a good buy signal. Not necessarily. As discussed in a recent article, golden crosses have a mixed history of success as a Bitcoin buy signal.

If you were to have bought Bitcoin at the time of each of the last seven golden cross events and held for 90 days, you would have been up on your investment four out of seven times. The margin of these gains would have varied wildly between 10-80%. One time out of seven, you would have been flat after 90 days, and on two occasions you would have been down (by 20% and 45%).

If you were to have held for 365 days, you would have been up five out of seven times. Again, the magnitude of gains over this time period varies wildly from 25% to 400%. The two occasions when you would have been down after 365 days coincided with the brutal bear markets of 2014