Just a day before Bitcoin breached $11,500, a psychological resistance level, the cryptocurrency painted one of the strongest bullish signals of its eleven-year history as a financial asset.
On October 11, BTC/USD formed a leading ‘Golden Cross‘ on its daily chart. The pattern emerges when the pair’s short-term moving average jumps above its long-term moving average. Typically, analysts measure the Cross based on a crossover between a 50- and 200-period moving average. But it remains a lagging indicator.
Replacing the 50-200 crossover with the 20-50 one gives a more accurate, and real-time depiction of the market’s bias – at least in the case of Bitcoin.
Bitcoin price has rallied by 40-50 percent in previous Golden Cross fractals. Source: BTCUSD on TradingView.com