Not only in crypto investments, this pattern usually helps traders in analyzing the forex, stock, and other capital markets.
Crypto coins are one of the most sought after investments among investors. The most popular cryptocurrency is Bitcoin. Like any other investment, crypto also carries a huge risk if not anticipated properly.
One of the things a crypto trader needs to understand is chart patterns. This is useful as a consideration for making profits before buying and selling crypto coins.
This article will further explain the meaning of the Golden Cross Crypto and how to identify the pattern when trading cryptocurrency.
Definition of Golden Cross Crypto
Before knowing what Golden Cross Crypto is, it will be better if you understand the Moving Average (MA).
Quoted from the Pintu page , the moving average is an indicator used by traders to identify the direction of the trend capital market through price movements.
The indicator will also assist traders in analyzing prices and determining potential next moves. MA is also used to determine the limit of support in an asset.
MA in cryptocurrency investment is also often used as a signal to buy or sell. So what is the Golden Cross Crypto pattern?
The Golden Cross Crypto is a price pattern when the short-term MA crosses above the long-term MA.
Described on the official Zipmex website , the long-term MA is a moving average with a count of 50 days. While the long-term MA is a count of price movements within 200 days.
Simply put, the Golden Cross Crypto pattern signals traders that the crypto coin is in a strong trend. If there is crypto money that is being targeted, you can buy it in a Golden Cross condition.
Quoted from the Bitocto page , the Golden Cross Crypto indicator is not an exact science. Because, in practice this pattern does not necessarily indicate that crypto coins are increasing.
Traders still need to do additional analysis and research before deciding to buy assets desired crypto.
So how to identify the Golden Cross Crypto? Here’s how to identify the Golden Cross Crypto pattern in cryptocurrency trading .
How to Identify Golden Cross Crypto
A simple way to identify Golden Cross Crypto patterns in the processtrading is to know the stages of the pattern.
The stages of the occurrence of the Golden-Cross Crypto based on the official Pintu website are as follows:
- Golden Cross-Crypto is characterized by a downtrend until the price chart is at the lowest position.
- This pattern is characterized by Moving Average with a shorter timeframe and moving upwards and crossing the Moving Average in a longer timeframe. This could signal a reversal of the cryptocurrency price trend.
- After that, the rise in cryptocurrency prices continued to a higher point.
Basically, the most frequently used moving averages for the Golden-Cross Crypto pattern are 200 days and 50 days. Meanwhile, for day traders , the timeframe used is narrower, namely 5 days and 15 days.
Thus a brief explanation of the Golden-Cross Crypto that every trader needs to understand . Hopefully the information above can add to your insight and be a consideration when buying and selling crypto assets.