The pattern occurs when the short-term moving average crosses above a long-term moving average. This time, what happened was that the 50-day moving average exceeded the 200-day moving average.
Despite being considered a bullish sign, it was not always followed by a upward trend in the price of bitcoin.
The last time a similar phenomenon occurred in September 2021 It was 10 days prior to a slight fall that later allowed the bitcoin hit $69,000 in November of that year. The uptick resulted in a 67% appreciation for the leading cryptocurrency.
Of the eight times that this phenomenon occurred in the price of bitcointhree of them have marked important bullish rebounds.
The current scenario, marked by high rates of inflation global and the restrictive monetary policies to try to contain it have an impact on economic growth and contribute to its slowdown. This scenario is expected to affect the possible upward evolution of cryptocurrencies.
Last week the S&P index it also registered a golden cross, which feeds the hypothesis that cryptocurrencies continue to operate linked to shares.
Source: Ambito
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