A widely followed crypto strategist says Bitcoin (BTC) may be gearing up for explosive price action to the upside amid the potential cross of two key indicators.
The anonymous host of InvestAnswers tells his 441,000 YouTube subscribers in a new video that Bitcoin could flash a golden cross in the coming days.
A golden cross occurs when a short-term moving average (MA) rises above a long-term moving average.
“Let’s look at the golden cross… We are coming up to one probably in about six days, maybe a little bit less depending on the trajectory of Bitcoin action.
[A golden cross happens] when the green line, which is a 50-day moving average, crosses through the red one which is a 200-day moving average.
In the past, Bitcoin’s big rallies, big, big rallies have all started with a golden cross.”
The host of InvestAnswers, however, warns that in the case of Bitcoin, there’s at least a 20% chance of a golden cross failing.
“But, remember not all golden crosses have led to a big rally.
I think only about 72% – 80% of them have. But Bitcoin has seen eight golden crosses, of which three confirmed huge moves afterwards.
They’re February 2012, October 2015 and May 2020. These were all on point of pre-staging at least a year to 18-month bull run now and the prices at least doubled or rallied 350% or a lot more.
Now, on the other hand, the golden crosses of July 2014, 2015 and February 2020 were bull traps and the cryptocurrency went down afterwards.”
On the odds that the upcoming golden cross will be followed by a rally, the analyst says,
“Based on this golden cross for Bitcoin that’s coming up in a couple of days, and the previous chart, maybe there’s a good shot, more than 50% – I’d say at least 60%, 65% shot that this will lead to a good rally.”
At time of writing, Bitcoin is worth $23,401.
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Source: https://dailyhodl.com/2023/02/04/popular-crypto-analyst-forecasts-explosive-bitcoin-rally-as-potential-golden-cross-spotted-but-theres-a-catch/