What is a Golden Cross and can it spark Bitcoin's next Bull run?
|Aug 14|| 7|
Hi everyone, Bisola here. I’m one of the two people that work on Mycryptopedia Trading and I provide all the technical analysis that I hope you love seeing!
This is going to another technical analysis update where I show you another potential trading strategy that could yield some nice returns as well as provide an update on Bitcoin and the crypto market in general.
At the end of this post, I’ll give you a breakdown of my personal portfolio including: what coins I’m holding, how much I’m up or down by and what potential opportunities I’m waiting for.
The Golden Cross
The golden cross is a technical trading analysis technique that basically uses the 50 day and 200 day moving averages as an indicator for when there might be a bull run or a downturn.
There are three stages to a golden crossing which are as follows:
Stage I - requires a downtrend and an eventual bottoming out as all selling is depleted
Stage II - The 50-day moving average crosses up through the 200-day moving average, indicating a breakout.
Stage III - Also known as The Death Cross, this is when the 200-day moving average crosses down through the 50-day moving average, therefore indicating a pullback.
I suspect that there may be a golden cross happening in Bitcoin soon, which is why I’m telling you all about this.
Let’s look at the price action of Bitcoin over the past month to illustrate my point:
The orange line is the 50-day moving average and the blue line is the 200-day moving average.
The key things to note from the graph are:
You can see the first (1) Golden Cross which indicated a short uptrend.
The (1) Death Cross occurs with the 200-day MA crossing down through the 50-day MA.
You can then see what is a beautiful (2) Golden Cross at the $9,600 mark which sparks an uptrend all the way up to $12,000.
The (2) Death Cross is very much in line with what I wrote on Sunday on if Bitcoin would break or reject $12,000 - the Death Cross signals a downtrend, which is confirmation of a rejection.
Now this brings me to what I think may be a third potential golden cross coming in the next few days weeks.
The 50-day MA is currently below the 200-day MA which is setting us up for it to happen.
If we think a third golden cross is going to happen, then at what price point?
Well if we remember the strategy that I let you guys in on, that most price action tends to happen at price points with round numbers:
Give the current price of Bitcon at time of writing is around $10,500, It is likely that a golden cross and therefore a reversal of this downtrend could happen at:
I’m going to be watching the chart very closely and I’ll let you all know when the golden cross happens and what the result of it is.
Here’s a quick look of what I’m holding and what opportunities I’m currently waiting for:
So I do prefer to trade Bitcoin because I think it’s the safer bet considering that the current climate is so bad for alts. But that’s not to say I don’t own a few altcoins my self!
Here’s my current portfolio and it’s performance over the past 24 hours:
Nuls (NULS) - 24hr: +4.103%
Nano (NANO) - 24hr: +2.215%
Binance Coin (BNB) - 24hr: +2.215%
I’m definitely a trader at heart and these holdings tend to change very rapidly. As soon as I see a 5% return I usually sell and move on to the next coin. I don’t wait for the big 20% or 100% returns because in such a volatile market like crypto is, it can easily move against you.
I am very much looking to add Bitcoin to my current holdings as soon as I see a golden crossing opportunity and I’ll make sure to keep you guys updated on that.
Like I said at the start of this post, I’m one of the two people that work on Mycryptopedia Trading - the other being my twin brother.
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