A rare phenomena referred to as a Golden cross happened to Bitcoin’s chart this week pointing to a potential price surge in the coming months. The Golden Cross refers to a situation where the Bitcoin’s 50-day moving average crosses over its 200-day moving average.
It is a rare bullish signal that historically precedes a price surge in the midterm. The Golden Cross has been well embraced and now partially explains the wave of positivity sweeping through Bitcoin investors.
The last Golden Cross occurred on April 22nd 2019 and was followed by a 165% surge in Bitcoin price in the next two months. The bullish run saw Bitcoin reach its highest price of the year at around $14,000 in June 2019.
If history repeats itself this time round then the Bitcoin investors are in for interesting times ahead. The recent Golden Cross happened with Bitcoin trading at around $9,750 meaning a similar surge of 165% would place the cryptocurrency’s price at around $26,000 by the end of April 2020.
This also marks an opportune time with the next Bitcoin halving expected in May. The halving event is expected to act as a catalyst for Bitcoin price rise. Therefore, the Golden Cross happening right before the halving event could serve as the perfect launch pad for Bitcoin’s Bull Run.
The rare occurrence and the resulting price forecasts are in line with other recent Bitcoin predictions. Over the past few weeks, several Bitcoin experts and crypto market analysts have been sharing their Bitcoin price predictions for both the short term and long term.
One notable projection was made by Fundstrat’s Tom Lee who opined that Bitcoin was likely to hit around $27,000 by July 2020. Lee observed that the digital currency was trading above its 200-day moving average, an indicator that has traditionally pointed to price increases of around 190% in the following 6 months. He noted that this has happened 80% of the time thus making a strong case for a huge Bitcoin price surge in the medium term.
Galaxy Digital’s Michael Novogratz also supported these predictions stating that Bitcoin has been the best brand globally over the past 11 years. He suggested that the cryptocurrency will most likely hit the $20,000 price again within the year. According to Novogratz this will potentially happen before the May halving, a prediction in line with Bitcoin’s historical behaviours following the occurrence of a Golden Cross.
Image courtesy of Pixabay
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