Golden Cross Forms on the Bitcoin Daily Chart, BTC Traders Bullish
In what is renewing confidence after a hammering last week, Bitcoin traders are ecstatic because of a Golden Cross formation in the daily chart.
Although a section of traders are not convinced this will turn the fortune for those who lost their arms last week, historically, this pattern precedes a rapid expansion in prices. The Golden Cross forms whenever the 50 moving average—the faster line—crosses above the 200-day moving average—the slower line, signaling a shift in trend in favor of buyers.
Bitcoin prices are tearing higher towards the $50k level as of early September 15. Still, it should be noted that the Golden Cross formation is a lagging indicator since it depends on moving averages. For this reason, traders who might be preparing for the party are already late, allowing others who used alternative technical indicators to reap early profits while swinging or scalping.
Nonetheless, the confidence in the market associated with this pattern could help the coin unwind losses of last week, reversing the trend. There were indicators that Bitcoin prices were peaking after a sharp one-month climb throughout August. However, the failure of bears to follow through and reverse print lower lows is a confidence boost for bulls.
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