A recent golden cross seen on Bitcoin’s charts is signalling a strong positive turnaround for the popular cryptocurrency. For the first time in nearly 4 years, the shorter term, the 50-day outlook has crossed over the long term moving average seen on the 200-day trend. A crossover like this is exciting news as it signifies big changes in the performance of Bitcoin, and we will likely see an extended bull market rise to the surface as a result.
Added the prospect of a strong change of direction, Bitcoin also managed to breakthrough April 10th’s high of nearly $5,500. Given these factors, we can expect the price to rise as high as $6,000 in the very new future, but not before some levelling off between buying and selling.
If we see a failure to surpass the $5,466 from April 10th as a result of price consolidation, however, we can also safely assume that the overall cost of the coin will slide back down to around $5,000.
On April 14th, the price climbed to an impressive $5,627 which was higher than any other time since November. Only a week earlier, prices were reported at just over $5,000. Another good indication that Bitcoin is heading into bullish territory.
While many analysts are busy talking about the short term effects of the golden crossover seen in the 50-day and 200-day charts, there is also talk of longer-term price gains. If that happens, Bitcoin’s turnaround might be more substantial than just a short bull run.
An important note about data reflected in the charts showing the golden cross is that the charts are built using past data. The idea is to show the moving trends based on past information, instead of showing the live market realities. That means the golden cross shows a definite shift of events but is no guarantee of growth for the cryptocurrency into the future.
Of course, when we look at what happened back in 2015 when a very similar golden crossover took place, we can assume good things. Only two days after 2015’s Bitcoin golden cross, there was a strong bull market taking over.
Another indicator of growth that must be taken into consideration is the relative strength index. At the moment, Bitcoin’s RSI has been more than 70 for more than two weeks which usually means that overbuying has occurred. If that is the case, a short-term price drop is possible.
Taking a look at relational data from the long/short charts reveals another interesting trend. Despite the general belief that Bitcoin is very near a bull run, having a months-long long/short position under 1.00 could mean that a bear market is at the door.
At this point, Bitcoin’s price could go in two directions. We will either see the price go all the way to $6,000 in the near future thanks to a strong bull run signalled by the golden cross or a slide down to $5,000. The slide would take place if overbuying on the relative strength index or the change indicated on the long/short ratio prove to be more substantial than the changes fueling the golden crossover. Look for a closing price north of $5,466 which will serve as proof of a bull run.