Posted on

Bitcoin Enters Uncharted Territory with First Ever Golden Cross

As we step into 2024, Bitcoin opens the year with a remarkable price of $47,000, signaling a potential shift in the market dynamics. 

This new year brings with it a historic moment for Bitcoin – its first-ever ‘Golden Cross’ involving the 50-week and 200-week moving averages (MAs). This rare occurrence is not just a technical anomaly but potentially a harbinger of a significant market movement.

What Is A Golden Cross In Crypto?

To understand the implications of this event, we must first delve into what a Golden Cross is in the context of cryptocurrencies. In technical analysis, a Golden Cross occurs when a shorter-term moving average crosses above a longer-term moving average from below.

In Bitcoin’s case, the 50-week MA has risen above the 200-week MA for the first time in its history. This event is traditionally viewed as a bullish signal in various markets, including stocks and commodities, and is now making its mark in the crypto domain.

The Golden Cross is significant because it potentially reflects a shift in market sentiment from bearish to bullish over a substantial period. It’s not just a fleeting moment of upward price movement but instead points to a sustained trend that has been building over weeks and months.

This historic crossover indicates a strong, long-term upward trend, shaking off the shackles of previous bearish periods.

BTCUSD_2024-01-08_07-47-46

Will The Buy Signal Push Bitcoin Higher?

The emergence of this Golden Cross in Bitcoin’s chart is bound to catch the eyes of trend-following traders and investors. Trend-following trading systems are programmed to identify such signals and take positions accordingly.

These systems, often automated and based on algorithmic strategies, play a significant role in today’s trading landscape. They analyze historical data and current market trends to make predictions and execute trades.

With Bitcoin’s first Golden Cross, we are likely to see a surge in interest from these systems. The signal could trigger a wave of buying activity as trend-followers jump in, anticipating a continued upward movement. This influx of buying could, in turn, push Bitcoin’s price even higher, creating a self-fulfilling prophecy of sorts.

However, it’s crucial to approach this with a balanced perspective. While the Golden Cross is a strong bullish signal, it’s not infallible. Daily Golden Crossed have been known to uncross daily’s later, only to Death Cross in the weeks ahead. A Death Cross is the opposite signal, when a shorter-term MA crosses a longer-term MA from above. 

In conclusion, Bitcoin’s first-ever Golden Cross between its 50-week and 200-week MAs is a momentous event in its history. It’s a signal that could potentially lead to significant market movements, particularly if trend-following systems take action based on this development.

Posted on

XRP Price At Make-Or-Break Moment, Key Levels To Watch

The XRP price is facing an extremely crucial juncture, which could become a make-or-break moment for the cryptocurrency. After the XRP token managed to rally almost 100% after the summary judgment in the case between Ripple Labs and the US Securities and Exchange Commission (SEC), there is almost nothing left of the gains just 43 days after the ruling, NewsBTC reported.

However, this is far from the worst. The recent price decline has brought XRP to key support levels that must be held at all costs to avoid another deep fall. At the same time, there is hope due to the formation of an extremely rare golden cross on the 1-week chart.

Golden Cross: A Beacon For XRP Bulls?

As of August 25, 2023, XRP stands at $0.5115. The weekly chart reveals the much-discussed golden cross, a phenomenon where a short-term moving average surpasses a long-term one, often hinting at a shift from a bearish to a bullish trend. In XRP’s case, the 50-week EMA has moved above the 200-week EMA.

This movement is typically seen as a harbinger of an impending upward trajectory. However, the tokens price is teetering just above the 200-week EMA, pegged at $0.5083. A weekly close below this figure could spell trouble.

Not only would it undermine this crucial indicator, but it might also negate the golden cross’s significance. Moreover, the uptrend line (black), which has been intact since early January, could be jeopardized if XRP dips below the $0.50 mark on a weekly basis.

XRP price

Given this backdrop, the golden cross on the weekly chart is a beacon of hope. Yet, the risks are palpable. Should the token breach the $0.50 threshold on a weekly timeframe, a sharper decline seems imminent, potentially plummeting to the 78.6 Fibonacci level at $0.4350.

Before potentially hitting the year’s low of just under $0.30, XRP might find support at $0.41 and $0.36. As in previous weeks, news of the legal battle between Ripple and the SEC are the most potent catalysts for an XRP price rally. While the SEC’s interlocutory appeal is currently under review by Judge Torres, the trial is not scheduled until mid-April next year.

A Historical Perspective

Remarkably, XRP has only seen one golden cross on a weekly basis in its history. This was at the end of November 2020.

XRP saw an increase of 196% in three weeks. However, as we all know, XRP’s rally was prematurely thwarted by the US Securities and Exchange Commission’s lawsuit against Ripple Labs and the declaration of the XRP token as a security. Therefore, the golden cross failed to materialize, while the price crashed.

Probably, the next week or two will tell if the golden cross chart pattern will play out this time.

Posted on

Bitcoin Death Cross 2022: What You Need To Know About The Deadly Signal

All across crypto, fear is in the air. Not only is the market shaken from the recent downtrend, but there’s an extra layer of doom and gloom due to an impending “death cross” in Bitcoin.

Learn all about the ominous sounding crossover of two commonly watched moving averages, what the signal could mean, and how Bitcoin price has reacted in the past.

The “death cross” is nigh | Source: BTCUSD on TradingView.com
Does The Bitcoin Death Cross Mean Doom And Gloom For Crypto?

Bitcoin price on daily BTCUSD charts is only days away from completing a “death cross.” According to Investopedia, “a death cross is a technical chart pattern indicating the potential for a major sell-off.” It occurs when a short-term moving average (in this case the 50-day MA) crosses below a long-term moving average (the 200-day MA).

The signal tells investors that the asset’s growth has slowed and is showing potential of a bear trend. Long-term price depreciation is possible. However, in Bitcoin, things don’t always behave the way they should.

Related Reading | 2022: The Year The Secular Bitcoin Bull Run Could End

Across eight total death crosses in the first ever cryptocurrency, the average drop within a month from the cross is a mere 25% (h/t Dan via TonyTradesBTC) – puny by crypto standards.

The opposite signal, golden crosses, also don’t always have a positive impact, either. In fact, Bitcoin price is lower now today than it was when the last golden cross triggered.

The history of death and golden crosses in emoji | Source: BTCUSD on TradingView.com
Data Shows Whether Or Not You Should Fear The Reaper

Such crossovers, are often used to confuse the market during consolidation phases. Ahead of the 2020 bull breakout, there were two death crosses and two golden crosses. One notable death cross in October 2019 resulted in a 42% pump the day prior signal.

Despite the strength, price action was rejected back down to new lows, only to golden cross, death cross, then golden cross again. Ahead of the fabled 2016-2017 bull run, there was also a similar fakeout – depicted in the green box.

Related Reading | The Hidden Bitcoin Trend Line That Could Save The Bull Run

Prior to the 2014-2015 bear market, however, there was a death cross, golden cross, back into a death cross fakeout that closely mimics the situation brewing in Bitcoin right now in the red box.

Another such example could result in a renewed bear phase. But the data otherwise shows that the “death cross” is not a reaper you need to fear.

How will #Bitcoin . React to the “death cross”☠❓

— NEWSBTC (@newsbtc) January 12, 2022

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com