What is the Golden cross in simple terms๐๐ผ
It is a widely recognized bullish technical indicator in crypto trading, signaling a bullish market trend.
How to spot The Golden cross โ ๐ต๐ผโโ๏ธ
Use the MA indicator, if a short-term moving average (MA) crosses above a long-term moving average, you have your golden cross.
How do we interpret this: The crossover of simply indicates growing buyer confidence and a possible sustained uptrend .
This is the Formation Stages of the golden cross
Downtrend: The short-term MA is below the long-term MA, reflecting bearish sentiment.
Crossover: The short-term MA rises and crosses the long-term MA, signaling a potential trend reversal.
Uptrend: The short-term MA stays above the long-term MA, confirming bullish momentum .
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What Happens After a Golden Cross?
Let's take examples from previous Bullish Price Movement ๐๐ผ
In 2015, Bitcoin surged 139% post-Golden Cross.
The 2019โ2021 cycle saw a 1,190% price increase .
After the golden cross support Level Shift happen ๐๐ผ
The long-term MA (e.g., 200-day) often becomes a support level in the new uptrend, providing a floor for pullbacks .
What you need to be aware of as a trader when spotting the golden cross โ
First, it might be a lagging indicator, sometimes appearing after a rally has already begun. And that's it why you use additional tools (RSI, MACD) to confirm the trend.
Second, Prices may consolidate or pull back near resistance levels (Bitcoinโs 2025 pause at $94Kโ$97K) before continuing upward .
For traders, the Golden Cross serves as a confirmation tool rather than a standalone signal.
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