Total Crypto Market Triggers Golden Cross, Despite ‘Deadly’ Bitcoin Counterpart
The chart representing the total crypto market capitalization has triggered a golden cross on daily timeframes.
While the crossover of two key moving averages is typically a buy signal, Bitcoin is close to confirming the opposite signal – a death cross – on a higher, more dominant timeframe. Will Bitcoin bears take back control of crypto, or will the golden cross help pull the entire market – including BTC – higher?
Total crypto to Golden Cross just under $1 trillion
The total cryptocurrency chart is calculated by TradingView and sums up all the different crypto assets out there in a price index. It helps tell the world exactly how much crypto as a whole is valued.
Currently, the total market capitalization of crypto is below a critical line in the sand: $1 trillion. After reaching above the level for the first time in months, the index pulled back and is trying to find support and is consolidating just below resistance.
A golden cross will confirm at the end of the day | TOTAL on TradingView.com
Despite the pullback across the crypto market, today’s price action will trigger a golden cross after tonight’s daily close. A golden cross occurs when a short-term moving average crosses above a long-term moving average from below.
In this case, the crossing is of the 50-day and 200-day moving averages. A golden cross signals to the market that the trend is potentially changing and could lead to sustainable upside.
But the Bitcoin Death Cross could put bears back in control
The ominous opposite of a golden cross is a death cross. Bitcoin, the most important weight in the overall market cap chart, could confirm a death cross on the weekly time frame.
If Bitcoin doesn't rally by Sunday, the weekly could confirm a death cross | BTCUSD on TradingView.com
Weekly time frame signals tend to be more dominant than daily signals, which could mean that bears are taking back control of crypto. However, if crypto rallies hard enough, it could remove the weekly bearish crossover in BTC and drag the rest of the market higher – Bitcoin included.
Notably, if BTCUSD closes at these levels by the end of the week, it will mark the first time in Bitcoin history that the weekly signal has been confirmed.
Regardless of Bitcoin’s weekly outcome, the overall crypto market value should cross the golden cross today after the daily close, making the rest of the week a nail-biter until the end.
While everyone is talking about #Bitcoin the cross of death, the $TOTAL the crypto market value has golden crosses every day. Weekly > Daily, but bulls have six days left to cross the death cross. Will be an interesting week. pic.twitter.com/Oz4UMlXPfZ
— Tony “The Bull” (@tonythebullBTC) 13 February 2023
