Cryptocurrency Forecast; Golden Cross Confirmed, Outlook Bullish

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Ethereum Could Be Next To Make An Astounding Bullish Breakout Following Confirmation Of Golden Cross Indicator

If the last couple of weeks have been anything to go by, Ethereum’s future is bright. The altcoin has been recording significant gains and has managed to set a bullish pattern. Now Ethereum could be set for even greater gains in the days and weeks to come.

Ethereum has just confirmed its Golden cross , a common indicator that predicts bullish momentum on the horizon. Bitcoin itself confirmed its Golden cross just weeks before it rallied.

A golden cross appears when a short-term moving average rises above its long-term moving average.

Analysts are now predicting that Ethereum will climb above $300. This will especially be easy if the altcoin can break its current resistance of about $270 whilst enjoying the same record-breaking volume figure it saw last week. Ethereum recorded a new volume high during last weeks rally- around $19 billion.

Ethereum 2.0 To Be More Mature

Ethereum is in addition to having technical boosters expected to be pushed further up with the launch of the Ethereum 2.0. This upgrade is expected to see the network improve in scalability and adopt the proof of stake consensus. This will go along way in keeping up with emerging platforms such as EOS and Tron which have been preferred choices for many DApp developers in recent years.

In regards to building Ethereum 2.0, the Ethereum foundation has recently revealed that it plans to allocate $30 million towards the development of the platform, in it- Plasma and Ethereum 2.0. According to a post by the project, the foundation has been refocusing and taking a more mature stand:

“As the ecosystem has matured, the Ethereum Foundation has refined its focus. ‘Doing what is best for Ethereum’ doesn’t mean trying to do everything — it means focusing on where we can add the most value, and leaving space for others to add value in the areas that they will be the most effective.”

Notably, $3 million of the allocated $30 million has been earmarked for growth and awareness with the aim of attracting more developers to the network.

In the weeks and days to come, it seems that Ethereum might have much to celebrate in development and with it, prices will continue pushing higher. At the time of press, Ethereum is recording a marginal gain of less than 1% and exchanging for $252.

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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Bitcoin to Form Golden Cross but It Cannot Guarantee a Bull Run

Bitcoin traders are enthusiastic about a textbook technical indicator whose formation could send the asset’s prices higher.

Dubbed as Golden Cross, the candlestick pattern will occur when bitcoin’s short-term moving average closes above its long-term moving average. On the cryptocurrency’s daily charts, the 50-period MA is inches away from jumping above the 200-period one, fueling traders’ buying sentiment atop bitcoin’s 42 percent price rally in 2020.

Mixed Signals

But history shows that Golden Crosses are not always accurate in predicting long-term upside moves. In the Gold market, for instance, there have been many instances wherein the bullish continuation indicator has delivered a complete opposite of an upside run.

Commodity data analysts at Sunshine Profits noted that since 2009, purchasing gold after a golden cross formation did not deliver gains. In 2020, for instance, the gold market formed Golden Cross multiple times, only to result in unsustainable upside rallies.

“This means that the golden cross in gold is not a reliable bullish indicator and viewing it as such does not seem like a profitable thing to do,” wrote Sunshine Profits in one of their columns.

Gold’s Golden Cross over the recent history | Source: Sunshine Profits

In bitcoin’s case, the formation of a Golden Cross has yielded wild price rallies so far.

The last of such moves occurred in April 2020, wherein the price surged by 170 percent three months after making a Golden Cross. Similarly, the same candlestick pattern in October 2020 followed bitcoin registering one of the history’s biggest price rallies – from $300 to $20,000 in just two years.

But, it is the same asset that registered a massive drop after logging its all-time high at circa $20,000. In total, bitcoin is still trending almost 50 percent down from its historic top – and one indicator alone cannot promise to bring another $10,000 to its valuation.

Converging Bitcoin’s Fundamentals

Technical indicators lag fundamentals. Bitcoin was able to form a Golden Cross in 2020 because investors treated it as an insurance asset against the then-escalating US-China trade war and yuan devaluation. The technical pattern later extended because of the hype created by Facebook’s foray into the cryptocurrency sector with Libra.

But then, traders took their profits and crashed the prices from circa $14,000 to as low as $6,430 as regulators brushed aside Libra and US-China agreed to work out a deal.

Bitcoin’s imminent Golden Cross formation comes on the backing of two key catalysts: halvening and monetary easing.

With halvening, bitcoin’s daily supply rate is scheduled to get slashed down from 1,800 BTC to 900 BTC. At the same time, central banks’ decision to inject hundreds of billions of dollars into the economy as a measure to safeguard it from global risks is somewhat helping bitcoin as investors’ offbeat risk-on asset.

Therefore, should these catalysts sustain, investors have a reason to enter or stay put in the bitcoin market. It would further prolong the Golden Cross formation.

If not, the bullish formation could fail, as it did in the case of Gold in 2020.

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2020 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

The rating is based on 30 sources since May 1, 2020.
We used only 10 sources before that date.
List of news sources is also available for news published after May 1, 2020.

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2020, after the prices went into a free fall following the December 2020 high.

In April 2020, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2020 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). ��
This is yet another sign that we’re back in a��market. ����”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2020, months after the market took a bearish turn.

In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2020, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2020 to almost $20,000 in December 2020. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.

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