Every trader who was just beginning his journey, one hundred percent encountered a moving average. At the same time as the moving averages 50 and 200 intersected, the Golden or Death cross was discussed at every turn. This is the intersection of 50 and 200 moving averages from bottom to top and from top to bottom.

In the near future there will be a bottom-up intersection of 50MA with 200MA, which is called the golden cross. Most newbies reading about this news will buy cryptocurrency, in this article we will tell what is bitcoin golden cross , what is a golden cross crypto, when the golden cross of bitcoin will happen and why it is better not to rush to buy cryptocurrency after this signal.

What is a golden cross on bitcoin?

Bitcoin golden cross is a bullish pattern when the 50-day moving average crosses the 200-day moving average and becomes higher than it.

The opposite pattern of the golden cross is called the Death Cross – when the 50-day moving average crosses the 200-day moving average and becomes lower than it.

Traders around the world use these moving averages in their analysis to determine the trend and direction of trades. Therefore, the 50-day and 200-day moving averages are a good guide for opening positions or understanding which way the market will move.

550 and 200 MA are really quite useful technical tools for trading, but one crossing is not enough. Below in the charts we will show the golden cross bitcoin history , explain why and what happened after the intersection of these moving averages.

1.The first BTC golden cross happened in February 2012. Immediately after the signal there was a correction of 30%, but over the next almost 800 days, just as much would have to be in the deal, this position brought about 6,000%.

2. The next intersection of 50 and 200 MA caused a loss of 25%.

3. The third case also did not bring positive results, the loss was 22%.

4. But if the last 2 deals brought about 50% loss, the fourth deal brought more than 2000% profit in 890 days.

5. The next golden cross brought 67% profit in 180 days.

6. Given the last two deals, before the next intersections of 50 and 200 MA, one hundred percent of all in the cryptocurrency market talked about this event. If you were somehow involved in trading and interested in cryptocurrencies you must have heard of the golden cross.

Most newbies are waiting for an incredible percentage to buy bitcoin, but the big players, knowing this, took advantage of this. Since entering, bitcoin has fallen by 60%, all those who held positions with leverages, starting with 2 leverages – were eliminated. Most people were selling their spot positions in anticipation of an even bigger drop. At this time, the big players were accumulating their positions. This case caused a loss of 33%.

7. Immediately after the capitulation of most positions, in May 2020 there was the most recent cross-section of the moving average to date, which brought 300% profit.

8. When will the bitcoin golden cross happen? Very soon, in the next few days there will be a new intersection of 50 and 200 moving averages.

Summary

In the near future, there will be a new golden cross, again the whole cryptocurrency market will discuss this event. In this article, we wanted to warn you that not every intersection of 50 and 200 MA is profitable. Yes, it is a really useful tool that helps to determine the market trend and can serve as an auxiliary signal in decision making. If you analyze all these deals, it is safe to say that the best option to buy under this approach were intersections after capitulation or a long long fall, such as 4, 5 or 6 golden cross.