Bitcoin is approaching a golden cross, with its 50-day moving average set to cross above the 200-day moving average, according to CoinDesk. Historical data shows 12 golden crosses since 2012. Among them, nine instances had measurable three-month returns, averaging 24.9%. Only three golden crosses lasted a full year without being interrupted by a death cross, and those yielded an average annual return of 250%. This time, however, the situation is different: USDT's market cap dominance is also nearing a death cross, with its 50-day moving average about to fall below its 200-day moving average. A decline in USDT dominance typically signals that capital is flowing out of stablecoins and into risk assets like Bitcoin. This indicator has previously marked major trend shifts in Bitcoin. The combination of these two signals further strengthens the bullish case for the current Bitcoin rally.
Bitcoin is closing in on a "golden cross" technical signal. That happens when its 50-day moving average moves above the 200-day moving average, based on CoinDesk analysis. The record since 2012 is pretty clear: Bitcoin has logged 12 golden crosses. Of those, nine cases with measurable three-month returns produced an average gain of 24.9%. Only three, though, stayed clear of a death cross for a full year, and those delivered an average annual return of 250%.
But this setup has another twist. USDT's market cap dominance is also nearing a "death cross" — its 50-day moving average is about to fall below the 200-day average. Usually, a drop in USDT dominance points to money leaving stablecoins and moving into risk assets such as Bitcoin. Short version: that signal has already marked major trend shifts in Bitcoin before. And with these two signals showing up together, the bullish argument behind the current Bitcoin rally looks even stronger.
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