Bitcoin prices have recovered from their pre-halving dump and the digital asset is approaching five figures once again. A very bullish technical signal is about to occur on the charts for only the seventh time in history.
A very bullish technical signal is about to form on the daily chart—one that has only been seen six times before—a Bitcoin golden cross.
It did not stay above five figures the last visit earlier this month but has returned there very quickly indicating that it may well do so this time.
BTC Golden Cross (GC):
GC = 50dma moves above 200dma.
There have been 6 occurrences.
Of those, only one has occurred while the 200MA is rising.
A 7th GC is about to occur with a slight rising gradient in the 200MA. pic.twitter.com/11U6XMueWN
— Nunya Bizniz (@Pladizow) May 18, 2020
A golden cross happens when a fast 50-day moving average (MA) crosses above a slower moving 200-day MA. It is a very strong trend reversal signal and has resulted in huge gains previously.
What is significant about this one is the rising 200-day moving average which has been falling since November 2019.
This lagging indicator starting to rise is indicative of a lengthy bull run should the cross actually occur. Furthermore, the charts indicate that the seventh Bitcoin golden cross could happen this week.
Featured image courtesy of Tom Stepanov/Shutterstock