BTC Gains 160% After 2019 Golden Cross, Will History Repeat Itself?

08.02.2023

138 1 minute read

Lark Davis tweeted that Bitcoin saw 160% gains in 2019 when a golden cross formed after a prolonged slump. In the preceding 24 hours, bearish attempts to control the Bitcoin (BTC) market were short-lived after finding support around an intraday low of $22,781.95.

As a result of the favorable involvement, Bitcoin’s price climbed to a new 24-hour high of $23,367.96. As the bulls resumed their push for market control, the price of BTC rose to $23,194.19 at the time of writing, a gain of 1.17%.

The 24-hour trading volume increased by 11.50 % to $26,900,466,586, and the market cap increased by 1.14% to $447,289,607,738 due to this spike. As pessimistic emotion faded, bulls stepped in to purchase the drop, seizing market control and driving Bitcoin prices back up.

BTC/USD 24-hour price chart (source: CoinMarketCap)

To create a “golden cross” (bullish crossover), the short-term MA must rise above the long-term MA. The fact that the 100-day MA reached $23137.65 and the 200-day MA reached $21,342.80 indicates this. The golden cross signifies a possible bullish rally; nevertheless, it is crucial to study the historical background to determine if the trend will sustain or collapse into a negative cycle.

Investors should be aware of the signal and its ramifications for the market since the golden crossings in July 2014, July 2015, and February 2020 all turned out to be bull traps as BTC collapsed abruptly into a death cross (a bearish crossover).

With the MACD blue line rising and moving out of the negative zone, as well as above its signal line, with a reading of -35.73, investors should expect a buoyant market as there is evidence of increased purchasing pressure along with growing market momentum.

Furthermore, the MACD histogram has lately pushed into the positive zone, with a value of +45.20. This shift indicates that purchasing pressure is building rapidly, further proving a bull market.

BTC/USD 4-hour price chart (source: TradingView)

Trending at -15.1224, the Know Sure Thing (KST) indicator is bearish, but crossing above its signal line implies a positive trend. Furthermore, the continuation of the KST’s rise above the signal line indicates that the current uptrend will continue in the short term.

Currently, the Klinger Oscillator is trending above its signal line at 23, suggesting that bullish momentum will continue to build soon and that prices will continue to advance above the signal line.

Furthermore, the Money Flow Index (MFI) shows a reading of 74.15, which is consistent with a buyer’s market. This reading reveals an abundance of purchasing pressure and a rise in the possibility of bullish action. If the MFI keeps rising and the KST and Klinger Oscillator keep climbing above their signal lines, the positive trend in the market should continue for some time.