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Bitcoin golden cross may likely be a dud and a sideways movement should be expected

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Bitcoin Golden Cross Hints at Massive Bull Run
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The so-called golden cross in cryptocurrency refers to the moment when a short-term moving average has crossed over a long-term moving average to the upside as this is deemed by crypto pundits as a sign of an upward turn in the market. That said, it’s being anticipated by traders, investors, and analysts within the bitcoin (BTC) space since it historically triggers a surge in BTC’s price. This time around, however, this may not be the case.  

Bitcoin golden cross is way short  

To be more specific, a golden cross (GC) happens when a 50 EMA (exponential moving average) crosses over the 200 EMA, not to mention that this usually occurs within 300-500 days after a DC. Reverse this process, and you’ll be getting the one that’s called a death cross (DC). Nonetheless, with what can be observed within the market as of late alongside an early DC, the upcoming GC was expected to take place within 60-69 days.   

Going sideways  

This forecast did happen as analysts plotted it at the tail end of July and at the start of September. Bitcoin folks need not celebrate just yet as it is believed that the GC bitcoin has right now could be encountering either a dip in price or what AMB Crypto calls a sideways correction.  

A major reason as to why it is expected to happen was June’s failed DC. This DC typically results in significant falls. However, reports are suggesting that the lowest point the BTC has delved into was -11.5 percent. This alongside the fact that the said DC was one of the shortest with only just 46 days as of writing. It is said that in the event the GC arrives next week, it will be around 53 days by then which is shorter than March 2020’s DC which is 57 days.  

Data says it all  

If the on-chain data from TradingView is anything to go by, the information may well seem to suggest a phase of correction is imminent. Checking on the relative strength index (RSI), it’s clear as day that there’s an impending trend reversal. It can be observed that the indicators have delved into what is described as the overbought zone.  

Also, the ratio between network value to transactions on a 30-day simple moving average (SMA) was at a 10-year high. It can be recalled that it went this high back in February of 2011. A two-month high on bitcoin’s reserve risk is also worth noting where it showed the investors’ confidence is as of late on a low level because of the steep prices.   

The data tells that the golden cross that everyone hopes for will likely be a dud and should expect a sideways movement instead. This too was the sentiment of some crypto folks as they do not believe bitcoin’s bullish GC. 

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