Crypto trader and YouTube influencer Lark Davis says Bitcoin (BTC) just confirmed a massive bullish signal.
In a new video, Davis tells his 432,000 YouTube subscribers that Bitcoin just flashed “golden cross,” a technical event seen by many traders as a sign for rallies to come.
“It’s happened. It’s official. It is confirmed. We’ve got a golden cross on Bitcoin. That is, of course, the crossing over of the 50-day moving average of the 200-day moving average. This is definitely nice to see.”
Davis also looks at the history of golden crosses in Bitcoin to see whether the event is a reliable bullish indicator. According to the crypto trader, the last time BTC confirmed one in May 2020, it saw a rally of 700%.
Davis says another golden cross in April 2019 witnessed BTC surge 200%, while one in September 2015 started a “non-stop mega bull rally” that pushed the top crypto’s price go up from $300 all the way to $20,000.
The trader also looks at BTC’s first golden cross in February 2012 where the leading cryptocurrency rallied by over 22,000% in the ensuing months.
However, Davis notes that a golden cross does not necessarily guarantee upward momentum as one that formed in March 2020 two weeks before the Covid-19 pandemic ended up being a false signal.
“You couldn’t have called that in TA (technical analysis)… [Covid] was an unexpected macro-event that drove the price down, so this golden cross ended up not fulfilling a massive rally, but that’s because of an external event that happened.”
Davis adds that another golden cross happened in July 2014, which he concedes was short-lived as BTC’s price plummeted from around $600 to roughly $150.
“We had a little tiny blip of a golden cross come in. That one resulted in a short-lived bit of enthusiasm for the market, followed by what was a 75% crash in the price of Bitcoin.”
BTC is currently trading at $48,435 at time of writing, a 25% increase from its seven-day low of $38,578, according to CoinGecko.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/SFIO CRACHO