The cryptocurrency market may be preparing for a major volatility event as an important technical signal – the Golden Cross – has just appeared on the altcoin market capitalization chart. According to analysts, if this signal is confirmed, the altcoin market could enter a phase of strong growth in the near future.
What is a Golden Cross?
A Golden Cross – or 'golden intersection' – is a prominent technical pattern often seen by professional traders as a sign of a transition from a downtrend to an uptrend. This signal forms when the short-term moving average (usually the 50-day average) crosses above the long-term moving average (usually the 200-day average) on the price chart.
According to a recent post on the X platform (formerly Twitter) from a well-known cryptocurrency analysis page, the altcoin market capitalization chart (excluding Bitcoin) on TradingView is showing the convergence of these two MA lines – a sign that the formation of a Golden Cross is just a matter of time.
Historical Significance and Potential Impact
According to analysis, the last time the Golden Cross signal appeared on the altcoin market capitalization chart was in Q4 of 2024. After the signal was confirmed, the altcoin market capitalization surged by 41% in just two weeks, reaching $1.64 trillion, the highest level in three years at that time. This event also triggered an impressive bullish wave for many large and small altcoins, allowing many investors to reap massive profits right after Bitcoin's halving.
Current Situation
Data from TradingView shows that the current altcoin market capitalization is approximately $1.29 trillion, after hitting a local peak of $1.33 trillion during last week's price surge – equivalent to a 16.5% increase. Although it has slightly corrected, the overall trend still shows that upward momentum is being maintained.
If the Golden Cross is indeed confirmed in the coming days, the market could witness a significant influx of money into altcoins from technical and institutional investors – those who always closely follow such accurate technical signals.
In a positive scenario, the altcoin market capitalization could soon return to the previous peak around $1.6 trillion, even surpassing this level if market sentiment is further bolstered by macroeconomic factors or new inflows from crypto ETFs and institutional investors.
Conclusion: A Golden Signal for New Opportunities?
The Golden Cross is not just a technical signal, but also a psychological indicator – showing the market's confidence in recovery and growth. If history repeats itself, this could be a golden opportunity to prepare for a strong price increase of altcoins.
However, like any investment strategy, caution is needed regarding short-term correction risks and high volatility. Investors should closely monitor key technical levels and manage capital effectively, especially in the context of a crypto market that remains full of surprises.