© Reuters
Investing.com – The is under pressure on Thursday morning, with the cryptocurrency posting a recent low at $22,458, the lowest since Jan. 25. However, a major technical signal recorded earlier this week could participate in drastically changing the trend in the next few weeks.
Indeed, the 50-day moving average confirmed a crossing above the 200-day moving average on Tuesday. However, this is one of the best known bullish technical signals by traders, which is called the “golden cross”.
Bitcoin rises 1400% on average over the last 5 occurrences of “Golden Cross”
The last time this signal was recorded on Bitcoin, in the middle of September 2021, the cryptocurrency initially fell for a few days, before initiating the upward movement that brought it to its all-time high of $68,925. on November 10, less than 2 months later.
The previous time, around May 20, 2020, BTC/USD then posted a rise of almost 600% to reach its previous high of $63,518 on April 13 of the same year.
The Bitcoin golden cross signal also preceded a 150% rise in Bitcoin in about 2 months after being recorded in late April 2019, and 6500% in just over 2 years after the signal in late October 2015.
In contrast, Bitcoin history showed that the golden cross signal failed once, after being recorded in mid-February 2020. BTC then fell 60% in less than 2 months.
In total, over the last 5 times Bitcoin recorded a bullish golden cross signal, the average performance of the cryptocurrency was over 1400%, before the tide turned.
Caution is still needed on BTC in the immediate future despite this key signal
By the way, it is important to note here that the golden cross signal suggests when to buy, but in no way indicates when to sell, and experienced traders know well that judicious trading positions can ultimately lead to losses without strategies. clearly defined position exit and risk management.
Moreover, the only time when this signal did not lead more or less quickly to a basic upward trend was a rather special case, since the period (February 2020) corresponded to the global panic at the start of the Covid pandemic. -19.
The evolution of Bitcoin over the next few weeks will therefore be closely monitored, bearing in mind that history shows that a limited correction (in time and magnitude) has often been recorded following golden cross signals. , before the rise takes place.