Bitcoin rate approached the formation of a bullish pattern "golden cross" on the price chart
The emergence of this pattern is usually seen as a signal for further market growth
Bitcoin has approached the formation of a historical pattern "golden cross" on the price chart, noted cryptocurrency market analyst Moustache on Twitter. This is a bullish indicator, which is usually seen as a signal for a further rise in the price of the asset.
A "golden cross" usually represents a bullish trading signal. When the short-term average rises above the long-term average, it indicates a potential shift in the direction of the market trend, which is why the pattern is considered to signal the beginning of a bull market.
The expert recalled that the "death cross" formed on the bitcoin chart in September 2022, before the collapse of the FTX crypto exchange.
Source: @el_crypto_prof on Twitter
If a "golden cross" forms, it will be the first for Bitcoin, Moustache noted.
On Feb. 7 of this year, a "golden cross" formed on the chart of the S&P 500 index, making it the 49th in almost 100 years (since 1928). Analysts at Bank of America noted that the index's return after the "golden cross" reaches its peak 30, 65, and 195 days after the appearance of the signal.
The 30 days after the "golden cross" fell on March 8, when the U.S. stock market plummeted amid problems in the banking sector. Day 65 fell on April 13, when the index was up after several days of decline. The 195th day falls on August 21.