Just Before the Token's Record Run, Bitcoin's Rally Stalls Short of a Trading SignalTable of Contents
Just Before the Token's Record Run, Bitcoin's Rally Stalls Short of a Trading Signal
By CoinUnited
6 Feb 2023
After getting so close to creating a trade signal last seen when the token was smashing records, Bitcoin's 2023 rise has stalled.
The nearly 4% decrease in the week ending on Sunday was the greatest weekly drop for the coin since November, cutting its year-to-date gain to 38%.
The 50-day moving average of Bitcoin's price is now higher than the 200-day moving average, which indicates that it is on the verge of forming a golden cross. This pattern appeared just before the bull markets of 2020 and '21.
The head of digital-asset strategy at Fundstrat Global Advisors, Sean Farrell, stated in a note that "most instances of a golden cross have resulted in good returns for Bitcoin, and many have happened at crucial long-term inflection points."
According to statistics provided by Bloomberg, over the previous five years, Bitcoin prices increased by an average of 22% in the 60 days after a golden cross. In contrast to the easy-money period of 2020–2021, when several crossings preceded rallies to all-time highs, the present background is marked by interest rate hikes by central banks in an effort to curb inflation.
Dovish wagers that such policy tightening will soon halt and maybe reverse this year fueled a January resurgence across global markets, but Friday's explosive US employment report damaged such predictions. From Bitcoin and Ether to Axie Infinity and Decentraland, the surge scooped up both major and tiny coins.
According to John Toro, head of trading at digital-asset exchange Independent Reserve, the payrolls data drove up Treasury rates, which have been a key factor in driving demand for riskier products.
The cryptocurrency market "may take a pause until risk assets have suitably repriced for higher yields," he said, assuming the bond market remained the risk asset leader.
The aftermath of last year's profound meltdown and the demise of companies like the FTX exchange provide continued difficulties for the digital asset market.
83 layoffs at the crypto platform Bittrex and about a quarter of the staff at Protocol Labs, the creator of the Filecoin token, are just two examples of the thousands of jobs that have been lost this year alone.
According to data compiled by CoinGecko, the number of layoffs in the cryptocurrency industry in January — about 3,000 — was the largest in the last year, second only to June 2022, when the TerraUSD ecosystem was wiped out for $60 billion.
At $22,800 as of 6:45 a.m. in London on Monday, Bitcoin, the biggest token by market value, had not moved much. Ether, which came in second, was likewise stable. Cardano and Polkadot are examples of smaller currencies that fluctuated between gains and losses.
When the 50-day moving average is higher than the 200-day moving average, a golden cross is about to form, and Bitcoin is just on the verge of doing just that. This pattern appeared just before the bull markets of 2020 and '21.
The head of digital-asset strategy at Fundstrat Global Advisors, Sean Farrell, stated in a note that "most instances of a golden cross have resulted in good returns for Bitcoin, and many have happened at crucial long-term inflection points."
According to statistics provided by Bloomberg, over the previous five years, Bitcoin prices increased by an average of 22% in the 60 days after a golden cross. In contrast to the easy-money period of 2020–2021, when several crossings preceded rallies to all-time highs, the present background is marked by interest rate hikes by central banks in an effort to curb inflation.
Dovish wagers that such policy tightening will soon halt and maybe reverse this year fueled a January resurgence across global markets, but Friday's explosive US employment report damaged such predictions. From Bitcoin and Ether to Axie Infinity and Decentraland, the surge scooped up both major and tiny coins.
According to John Toro, head of trading at digital-asset exchange Independent Reserve, the payrolls data drove up Treasury rates, which have been a key factor in driving demand for riskier products.
The cryptocurrency market "may take a pause until risk assets have suitably repriced for higher yields," he said, assuming the bond market remained the risk asset leader.
The aftermath of last year's profound meltdown and the demise of companies like the FTX exchange provide continued difficulties for the digital asset market.
83 layoffs at the crypto platform Bittrex and about a quarter of the staff at Protocol Labs, the creator of the Filecoin token, are just two examples of the thousands of jobs that have been lost this year alone.
According to data compiled by CoinGecko, the number of layoffs in the cryptocurrency industry in January — about 3,000 — was the largest in the last year, second only to June 2022, when the TerraUSD ecosystem was wiped out for $60 billion.
At $22,800 as of 6:45 a.m. in London on Monday, Bitcoin, the biggest token by market value, had not moved much. Ether, which came in second, was likewise stable. Cardano and Polkadot, two smaller currencies, saw gains and losses in equal measure.
The nearly 4% decrease in the week ending on Sunday was the greatest weekly drop for the coin since November, cutting its year-to-date gain to 38%.
The 50-day moving average of Bitcoin's price is now higher than the 200-day moving average, which indicates that it is on the verge of forming a golden cross. This pattern appeared just before the bull markets of 2020 and '21.
The head of digital-asset strategy at Fundstrat Global Advisors, Sean Farrell, stated in a note that "most instances of a golden cross have resulted in good returns for Bitcoin, and many have happened at crucial long-term inflection points."
According to statistics provided by Bloomberg, over the previous five years, Bitcoin prices increased by an average of 22% in the 60 days after a golden cross. In contrast to the easy-money period of 2020–2021, when several crossings preceded rallies to all-time highs, the present background is marked by interest rate hikes by central banks in an effort to curb inflation.
Dovish wagers that such policy tightening will soon halt and maybe reverse this year fueled a January resurgence across global markets, but Friday's explosive US employment report damaged such predictions. From Bitcoin and Ether to Axie Infinity and Decentraland, the surge scooped up both major and tiny coins.
According to John Toro, head of trading at digital-asset exchange Independent Reserve, the payrolls data drove up Treasury rates, which have been a key factor in driving demand for riskier products.
The cryptocurrency market "may take a pause until risk assets have suitably repriced for higher yields," he said, assuming the bond market remained the risk asset leader.
The aftermath of last year's profound meltdown and the demise of companies like the FTX exchange provide continued difficulties for the digital asset market.
83 layoffs at the crypto platform Bittrex and about a quarter of the staff at Protocol Labs, the creator of the Filecoin token, are just two examples of the thousands of jobs that have been lost this year alone.
According to data compiled by CoinGecko, the number of layoffs in the cryptocurrency industry in January — about 3,000 — was the largest in the last year, second only to June 2022, when the TerraUSD ecosystem was wiped out for $60 billion.
At $22,800 as of 6:45 a.m. in London on Monday, Bitcoin, the biggest token by market value, had not moved much. Ether, which came in second, was likewise stable. Cardano and Polkadot are examples of smaller currencies that fluctuated between gains and losses.
When the 50-day moving average is higher than the 200-day moving average, a golden cross is about to form, and Bitcoin is just on the verge of doing just that. This pattern appeared just before the bull markets of 2020 and '21.
The head of digital-asset strategy at Fundstrat Global Advisors, Sean Farrell, stated in a note that "most instances of a golden cross have resulted in good returns for Bitcoin, and many have happened at crucial long-term inflection points."
According to statistics provided by Bloomberg, over the previous five years, Bitcoin prices increased by an average of 22% in the 60 days after a golden cross. In contrast to the easy-money period of 2020–2021, when several crossings preceded rallies to all-time highs, the present background is marked by interest rate hikes by central banks in an effort to curb inflation.
Dovish wagers that such policy tightening will soon halt and maybe reverse this year fueled a January resurgence across global markets, but Friday's explosive US employment report damaged such predictions. From Bitcoin and Ether to Axie Infinity and Decentraland, the surge scooped up both major and tiny coins.
According to John Toro, head of trading at digital-asset exchange Independent Reserve, the payrolls data drove up Treasury rates, which have been a key factor in driving demand for riskier products.
The cryptocurrency market "may take a pause until risk assets have suitably repriced for higher yields," he said, assuming the bond market remained the risk asset leader.
The aftermath of last year's profound meltdown and the demise of companies like the FTX exchange provide continued difficulties for the digital asset market.
83 layoffs at the crypto platform Bittrex and about a quarter of the staff at Protocol Labs, the creator of the Filecoin token, are just two examples of the thousands of jobs that have been lost this year alone.
According to data compiled by CoinGecko, the number of layoffs in the cryptocurrency industry in January — about 3,000 — was the largest in the last year, second only to June 2022, when the TerraUSD ecosystem was wiped out for $60 billion.
At $22,800 as of 6:45 a.m. in London on Monday, Bitcoin, the biggest token by market value, had not moved much. Ether, which came in second, was likewise stable. Cardano and Polkadot, two smaller currencies, saw gains and losses in equal measure.
Latest Articles
SEE ALL ARTICLES>>
