Bitcoin Price Drop Mirrors Last Golden Cross Which Led to 170% Gains

gepubliceerd op by Cointele | gepubliceerd op

Bitcoin may not see a 170% increase after its fifth "Golden cross" price event, historical data suggests as markets stay down 8%. Analysis of price movements since 2009 shows Bitcoin has had a total of ten "Golden cross" and "Death cross" moments in its lifespan.

A "Golden cross" is when BTC/USD sees its 50-day moving average rise to cross over its 200-day moving average.

As Cointelegraph reported, hopes are currently high that the most recent golden cross will spark an identical reaction to the previous one - a 170% price surge in just two months.

Overall two out of four golden crosses have resulted in gains, while the other two in fact saw price losses.

Some death crosses were followed by price gains.

The event came just days after the golden cross and represents Bitcoin's fifth-largest drop ever.

Bitcoin 5-year price chart with 50 and 200-day moving average.

Some remain convinced that despite current reluctance to reclaim even $10,000, Bitcoin is still set to reap the benefits of the moving average behavior.

25,000 would represent a new all-time high for Bitcoin and is in line with predictions from figures such as Fundstrat's Tom Lee for 2020.

According to the celebrated stock-to-flow model, between now and May's block reward halving, Bitcoin should trade at an average of $8,600.