Bitcoin Price Sees First 'Golden Crossover' Since 2015

View Bitcoin's daily chart is reporting a "Golden crossover" - a bull cross of the 50- and 200-day moving averages - for the first time since October 2015.

That rally may be preceded by consolidation or price pullback, as the golden crossover is accompanied by the overbought readings on the relative strength index and a neutral long/short ratio.

With bitcoin's move to five-month highs Tuesday, a notable bull cross of key moving averages has formed for the first time in nearly four years.

This is the first golden crossover since October 28, 2015.

That said, the investor community may take heart from the fact that bitcoin's previous bull market began just two days after the golden crossover in 2015.

This time round, the confirmation of the golden crossover has been preceded by the violation of the bearish lower highs and lower lows pattern on April 2.

While there is a reason to be optimistic, the golden crossover lags price, as discussed earlier.

The ratio of BTC/USD long to short positions on Bitfinex is currently hovering just below 1.00 - the lowest level since early January - having printed a high of 1.53 on April 8.

A close above the April 10 high of $5,466 would establish another bullish higher high and strengthen the case for a rally toward $6,000.

With the golden crossover accompanied by the overbought readings on the RSI, as well as a bullish-to-neutral shift in the long/short ratio, prices may fail to close above $5,466 or the bullish close could be short-lived.