Apex crypto Bitcoin and Wall Street’s equity index, the S&P 500, are closing in on hitting a notable bullish technical signal, the golden cross.
A golden cross occurs when the 50-day simple moving average (SMA) of the security’s price moves above its 200-day SMA.
To chart analysts and traders, golden crosses signal higher prices.
Charting platform Trading view predicts that Bitcoin will likely see a golden cross in the next week or two, it’s first since September 2021.
Meanwhile, the S&P 500’s averages appear on track to produce the golden cross on Thursday.
Bitcoin has evolved as a macro asset since early 2020 and tends to move more or less in line with the S&P 500.
While bitcoin’s big rallies often start with a golden cross, not all golden crosses lead to a big rally as golden crosses could also be bull traps.
On the flip side, the death cross is the opposite of the golden cross and represents a bearish shift in the long-term trend.
