Bitcoin (BTC) may not see a 170% increase after the arrival of the fifth golden cross, historical data showing when the market fell 8%.
Challenge to reduce BTC price in December 2017
A “golden cross” is when the BTC / USD pair records the 50-day moving average cross up with the 200-day moving average. While a “death cross” is the opposite, that is, the two moving averages intersect.
As Toiyeubitcoin reported, the current expectation is very high that the recent golden cross will spark an identical reaction to the previous one of BTC – which soared 170% after only two months.
However, in general, two of the 4 golden crosss have been profitable, while the other two have actually seen BTC drop in price. Similarly, some death cross is followed by a rally, although usually death cross will produce a large reduction after that.
Bitcoin traders continue to delve into the problem to find an answer after the BTC / USD pair unexpectedly dropped $ 1,000 within an hour of February 20. This flash cash issue took place just a few days after the golden cross appeared and this is also the 5th largest 1-hour decline in the history of Bitcoin.
“The only other time we see prices drop more sharply is at the peak of December 2017,” Yassine Elmandjra, an analyst at investment consulting firm Ark Invest, emphasized on Thursday citing data. from Coin Metrics.
Loss 10% and profit 170%
However, some still believe that despite the difficulty of reclaiming the $ 10,000 mark, Bitcoin is still set to reap the benefits of moving average behavior.
“Look what happened after the appearance of the golden cross earlier. First, it drops about 10% and then leaps 170% in 60 days, ”said one Twitter user note and shared the 2-year cross-section graph of the BTC / USD pair, he added:
“If history repeats itself, we will see Bitcoin price around $ 25k before April.”
$ 25,000 will be Bitcoin's all-new highest price and that is in line with predictions from figures like Fundstrat's Tom Lee for 2020.
However, the technical hypothesis offers a much more cautious outlook for this year. According to the famous stock-to-flow model, from now until May – the time of the halving event, Bitcoin should trade an average of $ 8,600.
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According to CoinTelegraph
Translated by ToiYeuBitcoin
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