BTC Price Index and Live Chart – CoinDesk”>(BTC) weekly price chart.

The golden cross was confirmed when the 50-week moving average (SMA), on bitcoin, crossed the 200-week SMA. This is the first time this has happened. According to some technical analysis books, the phrase “the death-cross” and its counterpart, in which the SMA short-duration dips below the SMA long-duration, originates in Japan.

Many traders view crossovers as indicators that are forward-looking, and the golden version signals a bullish market for a long time.

This bullish interpretation may be questioned because averages tend to lag price changes and are based on historical data. The averages are a reflection of what has happened in the past. In this case, the first golden crossing on the chart is the result of bitcoin’s 70% increase to $42,700 over four months.

Crossovers are often viewed by seasoned traders as lagging indicator, and coincide with the trend exhaustion. The weekly death crossover confirmed in early 2023 was the lowest point of the bearish market. The mixed record for predicting bullish or bearish trends is the daily chart of Bitcoin.

Bitcoin’s rally is already over. The cryptocurrency has fallen 10% from its highs of near $49,000, which were registered last Thursday after 11 exchange-traded fund (ETF) spot products began trading in the U.S.

According to observers, the bullish market momentum has waned because early ETF flows failed to match the high expectations of the market.

The Net flow of funds to the ETFs is $965M, including seed funds. This is a good start. The spot price has fallen from the euphoria of the launch, as investors had unrealistic expectations. Greg Cipolaro is the global head for research at NYDIG .

Parikshit Miishra is the editor.