In the digital industry era that continues to develop, investors are increasingly actively looking for technical indicators that can help them recognize market trends. One indicator that has recently attracted attention is the Golden Cross. In the crypto market, a popular analyst on social media X called CryptoCon has shared his analysis regarding Bitcoin’s Golden Cross opportunities.
Based on the analyst’s statement, the Golden Cross is a significant technical analysis signal in trading activities, one of which is in the crypto market. This movement occurs when the 50 day moving average crosses the 200 day moving average.
“This is our second Golden Cross in 2023. We can see this movement when the 50-day moving average (MA) crosses above the 200-day moving average (MA),” said CryptoCon.
According to CryptoCon, this occasion marks Bitcoin’s second Golden Cross this year. But what does this mean for the leading cryptocurrency, and what might happen next?
History shows that the Golden Cross often indicates major changes in market dynamics. He stated that in the short term, it is important to remember that there is often a temporary decline after the Golden Cross.
“In the short term, it is actually more common for Bitcoin’s Golden Cross to bring a price decline, with only one example in October 2015,” he said.
Data shared by CryptoCon shows that drops of around 8 percent are common after Bitcoin’s Golden Cross, which equates to around US$31,600 of Bitcoin’s current price. However, keep in mind that these downturns are usually considered a “shakeout” period before larger positive developments.
According to the analysis, two of these seven Bitcoin Golden Cross events occurred before the start of the overall bull run, while the other two signaled the beginning of a parabolic rise in the value of the main cryptocurrency. It is worth noting that the current situation would probably be considered another trigger for a bull run, if not for the parabolic rise of early 2019 and the black swan event of 2020.
“My view for what will happen is that the Golden Cross launches an entire 4 cycle bull run with little correction moves to make the price bounce even more,” concluded CryptoCon.