The world’s largest cryptocurrency Bitcoin (BTC) continues to show strength even in this not-so-supportive macro environment. As of press time, BTC is trading 1.66% up at a price of $23,278 and a market cap of $448 billion.
The crypto market has so far cheered the commentary from Feb Chair Jerome Powell on Tuesday, and strong US jobs data. For a while, Bitcoin (BTC) has been oscillating in the range between $20,000-$23,000 and analysts are having mixed opinions regarding how the future rally might look like.
On the technical chart, Bitcoin has just confirmed a “Golden Cross” for the first time in more than a year. This means that Bitcoin’s 50-Day Simple Moving Average (SMA) has just moved past its 200-Day SMA. This chart formation could hint at a meaningful positive shift in the market’s momentum.
The formation of the Golden Cross during the last bear market of 2019 resulted in a 154% price rally in the BTC price. If the same thing repeats, we could see Bitcoin trading at more than $57,000 this year in 2023.
Bitcoin just made a “Golden Cross” on the daily chart.
The first GC after the last bear market led to 154% pump.
If this repeated, #Bitcoin would hit $57,900 in 60 days. pic.twitter.com/v7rWaaZx5C
— Bitcoin Archive (@BTC_Archive) February 7, 2023
Bitcoin And the History of Golden Cross
While many analysts see the formation of a “golden cross” as a bullish signal for the asset, they have a mixed history of success. Also, the results vary as per the holding period of Bitcoin post the “golden cross” formation.
During the seven golden cross events of the past, if the investor held BTC for 90 days, they would be in profit four out of seven times. The gain percentage varies anywhere between 10-80%.
However, if the investor holds BTC for 365 days post the golden cross formation, the investor would have been in profit five out of seven days. The magnitude of gains, in this case, varies between 25% to 400%.
Thus, one must keep in mind that the “golden cross” ratio doesn’t guarantee success every time and investors should have a greater holding timeframe.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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