Bitcoin had suffered a massive attack from the bears in 2018 and at the start of 2019. The prices seem to be stuck in a loop, bouncing between resistance points, tracing a sideways movement.
The price hasn’t seen any huge movements ever since it fell down from the $6,000 range, and it is undergoing small movements which are negligible. A lot of prominent traders, investors, and enthusiasts have been trying to figure out the bottom for Bitcoin and have formed a lot of connections in relation to other boom and bust cycles of Bitcoin from the past.
One such theory is the Golden Cross Theory which has been floating around the internet and gaining traction. Golden Cross, as per the definition from Investopedia, is a candlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average.
The golden cross is a bullish breakout pattern formed from a crossover involving a security’s short-term moving average [such as the 15-day moving average] breaking above its long-term moving average [such as the 50-day moving average] or resistance level.
History tends to repeat itself, so there is much that can be learned from the history of Bitcoin; to be precise, the golden cross that occurred on October 27, 2018. That particular golden cross took Bitcoin from $246 to ~$20,000. Considering the current scenario for Bitcoin, the moving averages are indicating, yet again, the formation of a golden cross in the near future.
Bitcoin, on January 04, 2015, fell from $457 to $191, creating a particular gap between the 200 and 50-day moving averages. This gap is remarkably similar to the one that is currently being formed between the same moving averages, as seen in the above chart.
As per the above theory and the history, the golden cross for Bitcoin might happen somewhere in the month of September 2019. Although Bitcoin won’t perfectly follow the history, considering the 286 days it took for Bitcoin to attain the golden cross, the bull run might happen on September 26, 2019.
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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.