BTC/USD technical analysis May, 19

19.05.2020 15:25:33

Trend traders are waiting for a new bullish sign, the so-called golden cross. The golden cross is the crossing of the 50 and 200 daily lines of the Moving Average indicator. Such the cross is an accurate indicator since it happens rarely. If the short-term 50-day line crosses the 200-day and moves above it, this is a strong buy signal. If the 50 day moves below 200 the day, this is a sell signal.

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If we analyze the BTC/USD chart, we can see that cross of the two Moving Average lines dated April 22, 2019, led to an increase in the price of Bitcoin. Then Bitcoin was able to rise from the area of $4500 to an annual maximum of $13800.

Coindesk analyst Omkar Godball saw a new “golden cross”. He predicts that the cross will occur within the next 2-3 days and will become a new bullish cross, the previous was recorded on February 18.

If such a cross occurs, it can activate buyers, as traders who trade with the Moving Average indicator and use only strong signals will activate.

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However, some traders say that you should not rely on the golden cross, as it can serve as a trap. They give an example of the cross on February 19, 2020. It turned out to be a trap for bulls. After this cross, the price of Bitcoin fell down. And we know this event as “Black Thursday”. Also, the cross was observed at the end of March. Then the 50 day MA crossed the 200 day MA down. Accordingly, traders expected a price decline, but instead, the price began to rise. And in early April, the price of Bitcoin rose to $9000. The indicator is based on past data and cannot serve as a harbinger of future movement.

Bitcoin forecast

This time, analysts say that the cross will be bullish because it coincided with halving, as well as macroeconomic conditions. Halving, the Fed's money program, coronavirus, all of these factors are positive for Bitcoin's price increase. And optimists hope to see Bitcoin above $10000. However, reality shows that since the beginning of May, Bitcoin could not hold above the $10000 mark, and the last two attempts to overcome this mark were unsuccessful.