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Crypto trader and YouTube influencer Lark Davis says Bitcoin (BTC) has just confirmed a massive bullish signal.
In a new video, Davis tells his 432,000 YouTube subscribers that Bitcoin just flashed the “golden cross,” a technical event seen by many traders as a sign of upcoming rallies.
“It happened. It’s official. It’s confirmed. We have a golden cross on Bitcoin. This is, of course, the crossing of the 50-day moving average of the 200-day moving average. It’s really nice to see.
Davis is also examining the history of golden crosses in Bitcoin to see if the event is a reliable bullish indicator. According to the crypto-trader, the last time BTC confirmed one in May 2020, it saw a 700% rally.
Davis says that another golden cross in April 2019 saw BTC rise 200%, while one in September 2015 launched a “nonstop bullish mega rally” that drove the price of crypto higher. the greater of $ 300 to $ 20,000.
The trader also examines BTC’s first golden cross in February 2012, where the major cryptocurrency rose by over 22,000% over the following months.
However, Davis notes that a golden cross does not necessarily guarantee an upward momentum, as the one that formed in March 2020, two weeks before the Covid-19 pandemic ended up being a false signal.
“You couldn’t have called it in TA (technical analysis)… [Covid] was an unexpected macro event that brought the price down, so this golden cross ended up failing to pull off a massive rally, but it was because of an external event that happened.
Davis adds that another golden cross occurred in July 2014, which he said was short-lived as the price of BTC dropped from around $ 600 to around $ 150.
“We had a little gold cross. This resulted in short-lived excitement in the market, followed by a 75% collapse in the price of Bitcoin.”
BTC is currently trading at $ 48,435 at the time of writing, a 25% increase from its seven-day low of $ 38,578, according to CoinGecko.
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Featured Image: Shutterstock / SFIO CRACHO
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