Bitcoins [BTC] Weekly average prices confirm the first ever Golden Cross

Market enthusiasts call it a “golden cross,” indicating a positive shift in asset prices, and now this marker has finally appeared on the weekly Bitcoin (BTC) price chart.

Bitcoin's 50-week SMA (Simple Moving Average) has exceeded the 200-week SMA for the first time since records began, confirming the golden cross. The phrase and its counterpart, “the death cross,” where the short-term SMA falls below the long-term SMA, originated in Japan, according to some technical analysis textbooks.

Many traders view crossovers as forward-looking indicators, with the golden version signaling an impending long-term bull market.

The bullish interpretation could be questioned as the averages are based on past data and tend to underperform prices. In other words, averages represent what happened in the past, and the first golden cross on the weekly chart is the result of a Bitcoin rally of over 70% to $42,700 in four months.

Therefore, experienced traders view crossovers as lagging indicators that often coincide with trend exhaustion. For example, the weekly death cross confirmed in early 2023 marked the bottom of the bear market. The Golden and Death crossovers on Bitcoin's daily chart have a mixed record in predicting uptrends and downtrends.

The Bitcoin rally has already stalled, with the cryptocurrency trading 10% lower from highs near $49,000 registered after 11 spot exchange-traded funds (ETFs) began trading in the US last Thursday.

According to observers, bullish momentum has faded as early ETF inflows failed to meet sky-high market expectations.

“Net flow for the ETFs was $965 million (including seed capital), a strong start so far. However, the spot price has fallen due to launch euphoria as investors have set unreasonably high launch expectations,” Greg Cipolaro, global head of research at NYDIG, said in a newsletter on Tuesday.

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