Golden cross is bullish for Bitcoin; is there a new alt-season be on the horizon?
Bitcoin has just experienced a golden cross, signalling a potential bull run. At the start of a new Bitcoin market cycle, the golden cross is a promising sign. It is important to consider however that for a number of premier Altcoins, this is the beginning of another cycle for them as well.
A golden cross occurs when the 200-day moving average crosses the 50-day moving average. It is usually a good indicator of a longer-term increase in prices. During Bitcoin’s last major bull run in 2017, the trend began with a golden cross.
It is important to note that false golden crosses have been known to occur, losing overeager traders their positions. However, the cross is still a promising sign as Bitcoin struggles to break free from resistance around the $10,000 mark.
It is important to remember that most Altcoins are comparatively young compared to Bitcoin, which has now entered its fourth cycle. Altcoins could potentially see the most impressive increases in price over the next cycle, as some are worth so little in comparison to Bitcoin that the upside potential is larger.
While Ethereum, Litecoin and Ripple are some of the more established Altcoins, launching in 2013, 2011 and 2012 respectively, they could still be set to experience something like what Bitcoin did in 2017 over this next cycle.
Ethereum, which looks to be in a positive price channel at the moment, is well set for the next four years. The advent of Ethereum 2.0 is a promising prospect for prices, as the update seeks to vastly improve speed and scalability and reduce costs of the network.
Decentralised applications (dApps) have yet to truly explode into the mainstream, which they could do over the next four years. If it does, Ethereum’s token value would potentially soar as a result.
After the halving, Bitcoin’s fees have gone up with the average transaction now costing about $4. Litecoin is set to take advantage of this over the next four years, as Bitcoin becomes increasingly expensive to use as a currency.
More and more companies will undoubtedly begin to accept payments in digitised currencies over the next four years. Alongside Litecoin’s incredibly fast payment and low transaction fees, this will only serve to raise its price higher.
The next four years could also prove vital in breathing new life into XRP. If more banks adopt Ripple as a vehicle for the transfer of funds, a turn around could well be seen.
Interestingly, the number of Ripple whales, single owners of more than a million XRP, has increased dramatically since March. This could be heralding something major in the coming months; there might be something going on behind the scenes at Ripple HQ that has spurred this increase in whales.
The signs look promising for Altcoins to have a great next cycle alongside Bitcoin. It is, however, important to remember that nothing is certain in the world of crypto.