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.