View.Bitcoin's short-term and long-term daily moving averages look likely to converge soon, opening up the potential for a daily golden cross, a bullish pattern not seen for nearly 10 months.
Bitcoin may see a move higher in coming weeks, courtesy of two major daily moving averages heading for a collision dubbed a golden cross.
The cross occurs when a short-term moving average crosses above a longer-term one, typically the 50-day and 200-day MAs, hinting at strong upward momentum in an assets price.
The last time such an instance occurred was back in April 2019, when the price of BTC rose 175 percent to create a yearly high of around $13,880 after a temporary pullback to $4,995, Bitstamp data shows.
The golden cross will need a sustained positive follow-through or the odds of a deeper pullback may rise.
Overall, price action has been trending bullish, as demonstrated by a weekly price breakout on Jan. 20 from the almost 7-month descending channel, beginning late last July.The 50-period MA on the weekly chart has been signaling bullish momentum when prices have remained above it - as seen in 2017 and the first quarter of 2018.
Prices remained bearish below throughout the latter half of 2018 and all of 2019, indicating weaker buyer demand.
Prices remain firmly above the 50 MA, hinting at greater buying power ahead of the expected bullish "Halving" event in May 2020, a supply cut programmed into bitcoin's code that sees miners' rewards reduced by 50 percent.
The mid-term bullish view would be compromised should prices drop below $9,706, the level of a major bullish engulfing candle on Feb. 11.
That could upset the prospects for the incoming daily golden cross and a continued rally to new 2020 highs.
Bitcoin Closing on Daily Golden Cross That Could Bring Boost to 2020 Price Rally
Published on Feb 14, 2020
by Coindesk | Published on Coinage
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