This “future” Bitcoin Golden Cross could revive bulls

On February 7, 2023, Bitcoin crossed golden on the daily time frame using spot price charts. The bullish buy signal failed to provide any significant upside.

The same signal is close to firing on a “future” price chart, which could provide the upward movement that crypto bulls expected.

BTC CME Futures Chart to Golden Cross

In recent weeks, there has been a lot of discussion about the gold cross and death cross. As mentioned, to start the month, Bitcoin BTCUSD is showing golden crosses on the daily time frame. In the days that followed, BTCUSD’s one-week charts gave the opposite signal: a death cross.

Another one of these “golden” signals is coming up, but it’s not on the BTCUSD chart. On BTC CME futures, Bitcoin is just days away from a golden cross of the 50-day moving average and 200-day moving average.

While the signal failed to produce significant results on spot exchanges, institutional traders could have more luck once it was triggered on the BTC CME chart.

BTC CME (left) versus BTCUSD (right) | BTCUSD on TradingView.com

When Will Bitcoin Go For Gold?

A golden cross occurs when a short-term moving average crosses a long-term average from below. A death cross instead crosses from above. The two signals tell investors when to buy or sell before 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 can prove to be a stronger confirmation than spot exchanges.

CME Group, otherwise known as the Chicago Mercantile Exchange, began offering its BTC futures contracts on the very day the 2018 bear market began. Considering its importance to Bitcoin price action, technical analysts often use the BTC CME charts instead of spot charts.

In the past, early signals or breakouts on spot exchanges have been false. Other signals such as 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 the bulls have been waiting for?

$BTC CME Futures does not yet have golden crosses on daily, while #Bitcoin spot exchanges did on February 7.

This is due to the lack of holidays and weekends that factor into the calculation of the 50 and 200-day moving averages. pic.twitter.com/BapuiQXWR3

— Tony “The Bull” (@tonythebullBTC) March 2, 2023