How to Spot Bitcoin’s Golden or Death Cross Using Simple Moving Averages

Understanding short-term and long-term moving averages (MAs) is important for trading strategies, whether for cryptocurrency or traditional assets.

Two rare but powerful signals that traders look for occur when the short-term and long-term MAs cross.

On the upside, that’s the golden cross, and, on the downside, it’s called the death cross.

Golden and death crosses have predicted many of the worst economic downturns of the previous century; for example, the death cross predicted the 1929, 1938, 1974 and 2008 bear markets.

Importantly, they underscore the potency of a primary trend, enabling traders to navigate the chaotic waters of bitcoin’s (BTC) extreme intraday and day-to-day price volatility.

Golden cross

The golden cross occurs when a short-term MA crosses over a long-term one to the upside, signaling to traders to expect a strong bullish upward move in an asset’s price.

There are two main requirements to a golden cross with the first being an end to a…