A popular crypto analyst believes the price action of Bitcoin (BTC) could take off within months if two key indicators cross.
In a new update, the anonymous host of InvestAnswers tells his 444,000 YouTube subscribers that when the 50-week moving average retakes the 200-week moving average Bitcoin will likely soar.
In technical analysis, this is known as a golden cross, which occurs when a short-term moving average rises above a long-term moving average. A golden cross, which is the opposite of a death cross, indicates the start of a sustained uptrend.
The crypto analyst believes that the golden cross will occur sometime in August.
“But what’s important about this is when we cross the 200-week over with the 50-week, and never before – we came close late 2015 – but never before have we actually pierced the 200-week moving average in red with the green line, which is the 50-week moving average.
So this one we went through, and that is a death cross. Now, what’s interesting and we’ve talked about this before, the death cross doesn’t necessarily mean the market goes down. So you can see when this death cross actually happened the market fell but only for a few days and then it bounced right back up again. It’s been crazy.
But right now… sometime August 2023, that green will pierce the red and that means, typically 65% to 70% of the time, when we get a gold cross, the short-term crossing the longer-term line, we will go bonkers. So that could be good. And you know, August is normally a quiet time in the market, low volume, participants are elsewhere at the beach or whatever, but this could be another catalyst that we’re looking at as we go forward.”
Bitcoin is trading for $27,025 at time of writing, down 3% during the last 24 hours.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney