Bitcoin crossed psychological resistance at $10,000 as it went up 41% year-to-date. The golden cross suggests a strong rally that could drive the price of the cryptocurrency to $20,000 before 2020 ends.
The golden cross is a candlestick pattern that serves as a bullish signal. A golden cross exists where short-term moving average crosses above long-term moving average.
In the past, the golden cross has proven to be a reliable indicator of bull rallies. The golden cross has only occurred three times in the history of Bitcoin.
The first golden cross that took place was in October 2015 before a strong bull run that led to the rise of Bitcoin from $300 to $20,000, a gain of 6,560% in two years.
The second time the golden cross occurred, Bitcoin rose in value from $5,000 in April 2019 to $14,000 in June 2019, a 180% in less than 60 days.
According to trader and investor, Crypto Rand,
“The Golden Cross is probably the strongest bullish signal you can get on a Technical Analysis. The last time it played out for Bitcoin, it resulted in a 213% price rise. Now it’s happening again.The target would be $28,000”
Other analysts disagree, asserting that a golden cross is not everything. Whatever, the future holds, the fact remains that golden crosses have preceded significant price rallies in the past.
With the incoming halving event, hopes are high for significant returns as interests in Bitcoin also rise.
After a great start to the year for Bitcoin and other cryptocurrencies, interest for digital assets increased. Google Trends showed that there were a lot more searches related to “Bitcoin Halving”. Many people expect the event to further increase the price of the cryptocurrency.