Seventh Bitcoin golden cross could be wildly bullish

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.

Bitcoin is holding on to gains since yesterday, hovering around the mid-US$9,000 [AU$13,782] range as heavy resistance above it looms.

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.

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

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