Cryptocurrency markets spent the weekend in flux, with bullish price action followed by an anticipated pullback. Importantly however, BTC remained above the $3,900 support level that has acted as such heavy resistance recently, which is good news for the market as a whole, while a potentially significant technical factor for Bitcoin could lead to the next stage in market recovery.
The Weekend’s Winners
BCH enjoyed the weekend better than most, posting a 15% rise, while KCS continued the steady rise it has been witnessing since March 10, during which time it has risen from $0.52 to $0.85, a 63% gain. KuCoin announced their own ICO launchpad, Spotlight, last week, increasing the demand of KCS tokens similar to Binance’s BNB token, which probably explains both the rise and its steadier nature.
Bullish sentiment is awash around the crypto space going into the week, despite the market cap dropping back to where it was at the start of the weekend. However, it should be remembered that the beginnings of a recovery and the tail end of a crash can look very similar, so don’t rule out further downward action.
Total Market Cap:
Steadily rising volume since January, and we’ve now broken out of a 15-month downtrend.
Bears in disbelief. pic.twitter.com/HwKdCSsqAl
— Nik Patel (@cointradernik) March 17, 2019
Bitcoin’s Golden Moment
Bulls allowed themselves a dose of hopium over the weekend as the ‘golden cross’ that occurred last week held, suggesting that a change in market sentiment may have occurred. A golden cross is the moment a short-term moving average crosses above a long-term moving average, in this case the 50-day MA crossing the 100-day MA. This is traditionally a bullish move (when reinforced by high trading volumes) as long-term indicators carry more significance and a golden cross is usually a sign of an imminent bull market. This occurred last week and has been maintained since, allowing the bulls to use it a sign that the market has turned.
Bulls point to October 2016, when the markets saw a golden cross with Bitcoin at $615 and it didn’t look back until December 2017 when it topped out at $20,000. But, golden crosses also occurred in June 2018 and September 2018 and the price fell afterwards, in the latter case by 50%, reinforcing the fact that it’s dangerous to read too much into technical indicators. However, if Bitcoin can keep the 50 MA above the 100 MA and if both can begin a continued upward trajectory then we will be witnessing price action not seen since the start of the bull run that seems a lifetime ago. And then we can start to dream…
What if you bought $BTC on the latest golden cross (oct 2015) and sold at the latest death cross (march 2018)? That would be a lazy 3787%+ trade. $eth even more! over 5000% #goingbacktobedtillnextcross #cryptocurrency pic.twitter.com/6QQD7EzJJN
— Bertus (@Cryptobertus) March 14, 2019