{"id":928,"date":"2024-10-29T19:10:30","date_gmt":"2024-10-29T19:10:30","guid":{"rendered":"https:\/\/bitcotasks.com\/blog\/bitcoin-triggers-golden-cross-what-this-means-for-the-crypto-trend\/"},"modified":"2024-10-29T19:10:30","modified_gmt":"2024-10-29T19:10:30","slug":"bitcoin-triggers-golden-cross-what-this-means-for-the-crypto-trend","status":"publish","type":"post","link":"https:\/\/bitcotasks.com\/blog\/bitcoin-triggers-golden-cross-what-this-means-for-the-crypto-trend\/","title":{"rendered":"Bitcoin Triggers Golden Cross: What This Means For The Crypto Trend"},"content":{"rendered":"

Bitcoin price is now above $70,000 per coin. The recent rally back toward local all-time highs has carried BTCUSD high enough to causes two important moving averages to form a “Golden Cross.” This signal has appeared twice since the bear market bottom and yielded significant results. Let’s take a look at the data and the most recent signal now that it has confirmed.<\/p>\n

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\"BTCUSD_2024-10-29_09-10-20\"<\/p>\n

Bitcoin Daily Golden Cross: 50-Day And 200-Day Moving Averages<\/h2>\n

As pictured above, BTCUSD has triggered a daily golden cross of the 50-day and 200-day moving averages. In technical analysis, a golden cross happens when a short-term moving average crosses above a long-term moving average. This typically suggests that there is an actively trending environment and price is expected to appreciate.<\/p>\n

The opposite, bearish signal is referred to as a death cross. The chart above also depicts a death cross in August 2024. However, its appearance didn’t lead to a prolonged downtrend. Could this also mean that this latest golden cross might not produce a sustainable uptrend?<\/p>\n

\"BTCUSD_2024-10-29_09-20-50\"<\/p>\n

BTCUSD Golden Cross And Death Cross Recent History<\/h2>\n

Zooming out provides a more clear picture of the signal’s effectiveness since the bear market bottom in November 2022. BTCUSD rising from bear market lows around $16,000 to $23,000 was enough to pull the 50-day moving average above the 200-day average, triggering the first golden cross of 2023.<\/p>\n

This kept Bitcoin trending higher until it reached roughly $32,000, then fell to retest lows around $25,000. The bearish short-term price action then triggered a death cross. Here, much like we saw in 2024, Bitcoin trended sideways and avoided a downtrend. It didn’t take much upside to force another golden cross. From that golden cross, BTCUSD rallied another 100%, doubling in price.<\/p>\n

The chart above shows that the golden cross in October 2024 occurred just months after the death cross, just like it did in late 2024. Could that mean another 100% rally from current levels? If so, Bitcoin price could reach as high as $140,000 before beginning to show weakness.<\/p>\n

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Buy And Hold: Using Moving Average Crosses As A Trading System<\/h2>\n

Using the 50-day and 200-day moving averages as a buy and hold trading system starting from 2018 would have yielded significant results. The first golden cross fired in April 2019 at around $5,000 per BTC. A death cross in October 2019 closed out the trade and sold some coins. A quick golden cross and death cross combo in early 2020 led to a small loss. May 2020’s golden cross more than made up for it, triggering when Bitcoin was trading just below $10,000.<\/p>\n

The trade stayed open while Bitcoin blasted off into its most bullish trend in recent years and eventually closed with the next death cross in Jun 2021 at around $35,000 per BTC. This kept $25,000 in profit from the trade, combined with the initial $4,000 profit from the early 2019 trade to make $29,000. The small loss takes the total closer to $28,500.<\/p>\n

In September 2021, BTCUSD golden crossed again at around $45,000, only to shortly later death cross at $3,000 lower. This death cross stayed active until Bitcoin shed another $30,000. Fortunately, using the two moving averages as a buy and hold trading system meant the death cross moved you to cash \u2013 avoiding the worst of the bear market.<\/p>\n

Come early 2023, Bitcoin was ready to begin a new uptrend and the golden cross triggered at $23,000. A death cross formed at $27,000, keeping another $6,000 worth of profits. Another golden cross in October 2023 triggered at $35,000, riding all the way to $62,000 when the most recent death cross closed out the trade.<\/p>\n

In six trades total, the 50\/200MA trading system would have earned approximately $58,500 as Bitcoin traveled from around $5,000 to $74,000. Four out of the six trades were profitable and the two losses were relatively minor when compared to the profits generated.<\/p>\n

Tony Severino, CMT is the author of the CoinChartist (VIP) newsletter<\/a>. Sign up for free<\/a>. Follow @TonyTheBullBTC<\/a> & @coinchartist_io<\/a> on Twitter. Or join\u00a0the TonyTradesBTC Telegram<\/a> for daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin price is now above $70,000 per coin. The recent rally back toward local all-time highs has carried BTCUSD high enough to causes two important moving averages to form a “Golden Cross.” This signal has appeared twice since the bear market bottom and yielded significant results. Let’s take a look at the data and the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[65,111,73,70,71,19,832,146],"class_list":["post-928","post","type-post","status-publish","format-standard","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-news","tag-btc","tag-btcusd","tag-btcusdt","tag-crypto","tag-xbt","tag-xbtusd"],"_links":{"self":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/comments?post=928"}],"version-history":[{"count":0,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/posts\/928\/revisions"}],"wp:attachment":[{"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/media?parent=928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/categories?post=928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcotasks.com\/blog\/wp-json\/wp\/v2\/tags?post=928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}