According to a Twitter survey conducted by crypto bull Thomas Lee, 24% of Crypto Twitter inhabitants believe that the signal, which typically hints at a bull run ahead, is a trap and that it is time to unload some Bitcoin. A golden cross occurs when a 50-day moving average crosses the 200-day moving average from under on the daily chart.
EToro Senior Market Analyst Mati Greenspan opines that a bull run has been confirmed. This is based on the fact that Bitcoin has broken the $5,350 resistance level, turning it into a new support area:
As proof of the unreliability of using technical analysis to predict prices of tradeable assets, crypto trader @cryptorandyy pointed out that there had been another golden cross in July 2015, which ended with the Bitcoin price nosediving by nearly 50%.
The $3000 level was a critical, psychological, round whole number that held. However, even if that level didn’t hold, the $2400 level represented a weekly demand zone…a bear trap.
At the moment, price is between daily zones. The daily demand at $4860 is serving as the line in the sand. If the daily supply at $5800 is breached, the daily demand at $4860 becomes the floor. If the daily demand at $4860 is breached first, price will head lower to the $4200 level.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.