A widespread crypto strategist says that Bitcoin (BTC) may be preparing for explosive price action to the upside amid the potential crossover of two major indicators.
The anonymous host of InvestAnswers tells his 441,000 YouTube subscribers in a new video that Bitcoin could flash a golden cross in the coming days.
A golden cross occurs when a short-term moving average (MA) rises above a long-term moving average.
“largeLet’s look at the golden cross… Wthey reach one probably in about six days, maybe a little less depending on the trajectory of Bitcoin’s action.
[A golden cross happens] when the green line, which is a 50-day moving average, crosses the red line, which is a 200-day moving average.
In the past, the big Bitcoin rallies, the big, big rallies all started with a golden cross.”
The InvestAnswers host, however, warns that in the case of Bitcoin, there is at least a 20% chance that a golden cross will fail.
“But remember that not all golden crosses led to a big rally.
I think only 72% – 80% of them have. But Bitcoin has seen eight golden crosses, three of which confirmed huge moves afterward.
They are February 2012, October 2015 and May 2020. All of these have been at the point of the predetermined uptrend for at least a year to 18 months now and prices have at least doubled or increased by 350% or much more.
Now, on the other hand, the gold crosses of July 2014, 2015 and February 2020 were bull traps and the cryptocurrency fell afterwards.”
As for the chances that the upcoming gold cross will be followed by a rally, the analyst says:
“Based on this golden cross for Bitcoin coming in a few days and the previous chart, maybe there is a good shot, more than 50% – I would say at least 60%, 65% that this will lead to a good rally.”
At the time of writing, Bitcoin is worth $23,401.
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