Bitcoin ‘Golden Cross’ Appears in Price Charts, Confirming Bullish Trend
The golden cross is generally regarded as a “positive” indicator,” Fundstrat wrote Wednesday in a note to subscribers.
![Bitcoin daily price chart shows the appearance of a "golden cross." (TradingView/CoinDesk)](https://www.coindesk.com/resizer/nXFJ7vDIC20PA1XA3eMAbWV0un4=/567x307/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/FHDGWH22FVEWLKGWGUN6UHGBAE.png)
Bitcoin has formed a “golden cross” on its daily price chart, a rare but closely tracked pattern that generally occurs when an asset is on the upswing.
The golden cross is a momentum indicator, defined as the point at which the 50-day moving price average crosses above the 200-day moving average. It’s a sign that the short-term price trend is rising faster than the long-term trend.
The appearance of the golden cross marks a dramatic comeback for bitcoin since a “death cross” appeared in the price chart three months ago. At the time, bitcoin was descending from the all-time high near $65,000 reached in February. A few days after the death cross, the price fell to $28,600, close to its 2021 low. The death cross is when the 50-day moving average falls below the 200-day moving average.
The golden cross is generally regarded as a “positive” indicator,” investment research firm Fundstrat wrote Wednesday in a note to subscribers.
It’s worth noting that the indicator’s predictive power for future trends is limited.
James Butterfill, an investment strategist at CoinShares, warned in a LinkedIn post that traders should be “cautious” when pundits refer to the golden cross pattern as a bullish technical signal. The indicator “hasn’t been a consistent predictor of positive returns.”
That said, bitcoin was changing hands at around $9,500 in May 2020, the last time a golden cross appeared. Over the remainder of the year, the price tripled, and then doubled again early this year before peaking.
![It's hard to discern consistent trends in bitcoin’s price performance following the confirmation of a “golden cross” in price charts.. (CoinShares)](https://www.coindesk.com/resizer/ZBGEXt-aYQv3Q0-DAcDY0ih2rXo=/560x404/filters:quality(80):format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/54D6YKCFVFFJ7ENPIJIGGRG3YA.png)