Bitcoin could form a Golden Cross pattern in the third or fourth week of May.
The bullish signal will surface immediately after the cryptocurrency’s mining reward halving.
The converging indicators could result in a massive upside shift.
Bitcoin is going to flash the “Golden Cross” in the third or fourth week of May 2020.
The title refers to what happens when an asset’s 50-day moving average crosses above its 200-day moving average. Traders typically see it as a bullish indicator that leads to an extended upside – but the fact that a Golden Cross is surfacing immediately after Bitcoin’s mining reward halving has doubled the possibility of a price rally.
Golden Cross Meets Halving
Bitcoin will undergo a pre-programmed supply cut on May 12, 2020, wherein its daily output will go down from 1,800 BTC to 900 BTC. It will be the cryptocurrency’s third halving. And because the last two events had followed massive price rallies, speculators believe the next would yield similar results.
“Bitcoin has historically bottomed 459 days prior to the halving, climbed leading into it, and then exploded to the upside afterward,” explained Dan Morehead, CEO of Pantera Capital. “The post-halving rallies have averaged 446 days — from the halving to the peak of that bull cycle.”
The current halving cycle saw Bitcoin bottoming 514 days ahead of May 12, 2020. That should – historically – send bitcoin to its all-time high before August 2021.
Bitcoin halving throughout the history | Source: Pantera Capital
Mr. Morehead noted that the bitcoin price could peak at $115,212 per token should its historical supply-demand relationship hold after the May 12 halving.
The prediction involuntarily garners support from the upcoming Golden Cross formation. The technical indicator holds an impressive track as a lagging bullish signal, i.e., the price starts rising ahead of its creation and extends its upside momentum after forming it.
On April 23, 2019, for instance, bitcoin flashed the Golden Cross after rising 32 percent into the month. Its formation later transformed into a massive buying spree that sent the cryptocurrency’s spot rate another 151 percent – to near $14,000. It was after bitcoin has formed a bottom near $3,120 in December 2018.
BTCUSD 50-DMA and 200-DMA expect to cross path this May | Source: TradingView.com, BitMEX
On the flip side, Golden Cross failed to attract buyers in some cases. Its formation on February 18, 2020, followed one of the bitcoin’s biggest daily price crash in March 2020. Although, the downside move surfaced in the wake of an uncontrollable macroeconomic and humanitarian disaster – the Coronavirus pandemic.
Nevertheless, Bitcoin recovered by more than 100 percent after the crash, now attempting to close above $9,000.
What’s Next
Bitcoin’s hashrate and mining difficulty have surged to its record highs right ahead of its halving. It shows that miners are trying to accumulate as many bitcoin rewards as they can before May 12. Moreover, bitcoin’s recovery from below $4,000 to near $9,000 would ensure that miners maintain their break-even costs efficiently before their profits get cut by half.
Bitcoin hashrate graph | Source: Glassnode
All and all, what miners are saving today would enter the spot market after halving at a higher rate. It would ensure that mining facilities run despite the overnight shift in their risk-reward spectrum.
As that occurs with the Golden Cross, the bitcoin price – both fundamentally and technically – could head higher.
Photo by Hugo Fergusson on Unsplash origin »
Fours day after finally breaching the $7000 mark in the charts, Bitcoin registered another slump of $400 in 5 hours, bringing the valuation back under the 7k range. However, BTC's price looked more thThe post Bitcoin likely to cross $8000 mark before its 3rd halving appeared first on AMBCrypto.
Coinspeaker Bitcoin Price Managed to Cross $6,700 but Is Below Again, BTC Halving 47 Days AwayBitcoin price has managed to go above 6,700 again, with the market data showing that the first cryptocurrency is ready to take off.
The Bitcoin dominance rate has been decreasing since Jan 8, reaching a low on Feb 15. Since then is has begun another upward move, recouping almost 50% of its previous losses. Bitcoin Dominance Rate Highlights The price is either trading inside a descending or symmetrical triangle.
Bitcoin's price has been on the rise in anticipation of the halving that is to take place a few months later. The recent golden cross formation also indicated that the coin was likely to have a strongThe post Bitcoin makes a comeback to its volatility days appeared first on AMBCrypto.
Cryptocurrency markets have seen fresh gains on Wednesday after the slight pullback that started two days prior. Most of the top 10 digital currencies by market cap have gained between 4-8% and the entire market valuation of all cryptos has hovered between $295-300 billion.
Bitcoin’s recent golden cross on the daily chart may have driven bullish enthusiasm for the leading crypto to reach a tipping point. With the upcoming halving, many investors are buying up sub 10K BTC in preparation of the supply-side shock.
This year kicked off with BTC price gains that recently saw the leading digital asset cross $10,000 once again. However, with Bitcoin dipping below five figures today, some are once again calling for the price to return to below the current yearly lows or perhaps even lower.
Litecoin was pegged to boom this year, given the historical block reward halving which took place on August 4th; but in contrast, the silver altcoin failed to see its price climb. Soon after, the altcoin saw the formation of death cross on 30th August which is considered highly bearish as it indicated the potential for […]
The post Litecoin looks to gain movement with potential inverted bart formation appeared first on AMBCrypto.
Technicals for the LTC/USD pair remain bearish after the exuberant bull run leading in to the block reward halving. With a Death Cross and bearish Cloud metrics on the daily, LTC likely has further bearish price action ahead.
Litecoin, hours after breaking into its infamous Death Cross, has doubled down on its bearish claims. The fifth largest cryptocurrency in the world was going though a slump, well before its August halving.
Litecoin is looking to slump even further. The world’s fifth largest cryptocurrency has been in a slump since its halving earlier this month, dropping below resistance after resistance and breaching the $75 mark.
Litecoin’s post-halving slump should be met with concern. The fifth-largest cryptocurrency in the market has been in a slump since the beginning of the month, with many dismissing it as simply the halving bears.
Cantor Fitzgerald, a leading financial services firm based in the United States, has picked Anchorage Digital and Copper.co as launch partners for its soon-to-launch Bitcoin financing business. Cantor, whose product and service suite includes investment banking, asset management, capital markets,…
Blockchain analytics tool Bubblemaps has concluded its Token Generation Event for its native token BMT with 13,500% oversubscription. On March 11, Bubblemaps (BMT) concluded its TGE for its BMT token, which was hosted on Binance Wallet. The project intended to…
Weekly flows for spot Bitcoin ETFs remained negative for the fourth consecutive week as macroeconomic factors continued to weigh heavily on investor sentiment. According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded another week of outflows from March…
Bitcoin price volatility, shifting narratives in crypto and U. S. President Trump’s executive orders have shaken down the cryptocurrency ecosystem in less than 50 days of his administration. Crypto.
Spot Bitcoin exchange-traded funds in the United States recorded their third consecutive day of net outflows on March 5, led by Valkyrie’s BRRR. According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded $38.3 million in outflows on Wednesday,…
POPG, the web3 entertainment ecosystem, is set to launch on KDG and Gempad on March 3, 2025, offering fans a new way to access its utility-driven tokens.
Spot Bitcoin exchange-traded funds in the United States continued their outflow streak on Feb. 27 as Bitcoin tumbled under $80k, driving a risk-off sentiment across the broader crypto market. According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded…