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On February 7, 2023, Bitcoin golden crossed on the daily timeframe using spot price charts. The bullish buy signal failed to produce any significant upside.
The same signal is close to firing on a “future” price chart, which could provide the upward movement that crypto bulls were expecting.
BTC CME Futures Chart To Golden Cross
In recent weeks, there has been a ton of discussion surrounding golden crosses and death crosses. As mentioned, to start the month, Bitcoin BTCUSD charts golden crossed on the daily timeframe. In the days that followed, BTCUSD one-week charts gave the opposite signal: a death cross.
Related Reading: This Fractal Suggests Bitcoin Price Could Nearly Double In 30 Days
Another one of these “golden” signals are coming up, but it is not on the BTCUSD chart. On BTC CME futures, Bitcoin is only days away from a golden cross of the 50-day moving average and 200-day moving average.
While the signal failed to yield significant results on spot exchanges, institutional traders could have more luck once triggered on the BTC CME chart.
BTC CME (left) versus BTCUSD (right) | BTCUSD on TradingView.com
When Will Bitcoin Go For The Gold?
A golden cross occurs when a short-term moving average crosses a long-term average from below. A death cross crosses from above instead. The two signals tell investors when to buy or sell ahead of a potential trend change.
Since the moving averages are calculated using each day’s closing price data, the lack of holidays and weekends on BTC CME charts creates a slightly different indicator reading. The signal produced is the same, but could prove to be a stronger confirmation than spot exchanges.
Related Reading: Bitcoin Golden Cross Versus Death Cross: Why The Outcome Is Critical
CME Group, otherwise known as the Chicago Mercantile Exchange, began offering its BTC futures contracts the precise day the 2018 bear market began. Considering its importance to Bitcoin price action, technical analysts often use the BTC CME charts in lieu of spot charts.
In the past, early signals or breakouts on spot exchanges have been false. Other signals like gaps, are only evident on BTC CME futures charts due to the same weekend or holiday downtime.
Will this upcoming golden cross be the confirmation signal bulls have been waiting for?
$BTC CME Futures has yet to golden cross on the daily, while #Bitcoin spot exchanges did on February 7.
This is due to the lack of holidays and weekends factoring into the calculation of the 50 & 200-day moving averages. pic.twitter.com/BapuiQXWR3
— Tony “The Bull” (@tonythebullBTC) March 2, 2023
Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com