Bullish Signal? Recent Moving Average Crossover May Signal Higher Bitcoin Prices This Month

On Oct. 28, Bitcoin’s 10-period moving average crossed above its 50-period moving average.

BTC’s price history Jan. 1, 2015 shows this trend occurring 27 times over 2,862 trading days. Following each occurrence, BTC’s price increased by 3% on average for every seven days. BTC prices were about 10% higher on average for 30-day periods following the same signal. To align with past 30-day performance, prices would need to approach $22,615 by Nov. 28.

The 10/50 moving average crossover has performed in line with the famed golden cross, though there have been far fewer opportunities to do so. A golden cross occurs when the 50-day moving average for an asset crosses above its 200-day moving average and often indicates a bullish trend in asset prices. The golden cross has occurred just six times since 2015, with average seven- and 30-day gains averaging 4.3% and 9.5%, respectively.

​

Breaking down 10/50 MA data (over 27 times) and the golden cross (6 times)

Whether this signal holds true for the recent crossover cannot be certain for sure though. Bitcoin’s declining volatility over the last 12 months could work against the signal - simply put, while the signal is likely positive, the reduced volatility has halted price movement.

Source: https://www.coindesk.com/markets/2022/11/04/recent-moving-average-crossover-may-signal-higher-bitcoin-prices-this-month/