There is a golden cross in the offing for Bitcoin, which Crypto Crew University says could be the precursor to a substantial rally and has yet to give any false signals. The expert from the university does caution, though, that there are risks similar to those seen during the 2019 market correction.
A Rare Bitcoin Golden Cross on the Horizon
In their most recent analysis, Crypto Crew University puts forward the case that Bitcoin is set to make a rare appearance of a golden cross on the two-day chart. By way of explanation, the expert notes this is what happens when a short-term moving average overtakes a longer-term one, an event that is usually a harbinger of a robust uptrend. Given that past occurrences have been major turning points in the asset’s price action, it is one to watch for investors and traders alike.
Historical Context: Previous Golden Cross Events
One need only look at the record to see that the Bitcoin golden cross has a way of presaging major bull runs, which lends some credence to present-day expectations. The first of any consequence came in 2012 with the price in the vicinity of $6; from there it was an ascent to $1,300. Then in 2015, the second major cross saw Bitcoin at roughly $300 before it made its way to $20,000.
Yet the Crypto Crew University host would be the first to point out that volatility is not absent in the wake of such crossovers. The market can still prove turbulent if support is not held, as was the case in 2019 when a quick run-up was met with a hard correction. In that respect, even the most telling technical signals are no guarantee.
Potential Risks: Echoes of 2019’s Correction
An expert from Crypto Crew University is quick to point out the risks that remain even as the forthcoming Bitcoin golden cross may be priming the market for a fresh all-time high, perhaps by November. He makes a case for looking at the 2019 cycle as a cautionary tale; back then a rapid rally was followed by an inability of Bitcoin to stay above the 200-day moving average, which in turn precipitated a major slide.
Should the asset prove unable to hold its ground over that same 200-day mark in this cycle, one can expect a comparable sort of correction to put a damper on the optimism around the golden cross. For that reason, the expert advises that investors keep their composure and let the facts drive their decisions, not any of the hype or panic that tends to run through the market.
This article reflects the channel author’s opinion and is not investment advice.
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Source — Crypto Crew University: https://www.youtube.com/watch?v=-Tu4DJsnOQs
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