TL; DR
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Crypto sword: “Bitcoin ‘bull cross’ is about to strike”
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Earlier this week, an EMAs and SMAs are just fancy words for “average prices.”
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The last time this bull cross occurred, it marked the start of an 18-month run that saw Bitcoin rise 40x, from ~$500 to ~$20,000.
Full story
No one:
Absolutely no one:
Crypto sword: “Bitcoin ‘bull cross’ is about to strike”
Us: “Sounds ominous. What does that even mean?”
To answer our own question, we did some digging…
Earlier this week, an
EMAs and SMAs are just fancy words for “average prices.”
And the main difference between the two is that the EMA focuses on short-term price averages, while the SMA focuses on longer-term averages.
The next thing you need to know is:
Technical chart analysis is a kind of ‘astrology, for financial bros’: it looks at random factors and patterns, in an attempt to predict the future.
(Some traders will even invest based on Moon phases and solar cycles!)
We say all this to emphasize:
The market will often place a lot of emphasis on rarely occurring patterns.
…and a specific configuration of the EMA and SMA lines will cross each other positively for the first time since 2016.
The last time this bull cross occurred, it marked the start of an 18-month run that saw Bitcoin rise 40x, from ~$500 to ~$20,000.
Now it must be said:
Bitcoin is too big to make these kinds of gains anymore, and this bull cross hasn’t even happened yet – in fact, it may not actually happen.
(And even if it is, it’s no guarantee of anything).
But boy is the suggestion of an 18-month bull run exciting!