The golden cross is one of the most popular traditional technical indicators that signals the continuation of a long-term bull market. Today, it happens for the first time on the Bitcoin (BTC) chart in 2021.
However, historical analysis shows that sometimes the golden cross in the cryptocurrency market has been a false signal. It seems that it is impossible to understand the significance of this event well without referring to the broader context of the crypto market and other conditions for the continuation of the bull run on BTC.
What is a golden cross?
A golden cross is a pattern used in technical analysis in which a relatively short-term moving average crosses above a relatively long-term moving average (MA). Its opposite is the death cross, where the contrary process takes place. The former confirms an uptrend, while the latter indicates a downtrend.