Bitcoin enthusiasts have a little cause for celebration as the cryptocurrency's three-day chart tracking showed a "golden cross." The golden cross is a long-term bull market signal, according to Coin Desk.
For the first time since February 2016, the indicator made its mark. The last time it made a crossover was in August 2016, which was a few months ahead of the mega bull run that led to the historic 2017 trading month.
Prior to the indicator showing itself, bitcoin has been on a 33% price drop. It showed itself as the 50-candle price average made a crossover to the 200-candle average on the three-day chart, revealing an honest-to-goodness golden cross. It is best to note that these indicators have limited predictive powers, and no one knows just how accurate they really are.
Seasoned traders are being advised to take caution as the latest crossover may have been a product of the bitcoin rally dating from December 2018 to June 2019, when bitcoin changed rates from a low of $3,122 to its latest high of $13,880.
Bull followers can take a little solace in the fact that the last golden cross paved the way to that 2017 bull run that's forever part of bitcoin's history.
What's not helping bitcoin's case is the fact that there are those who are non-believers of the cryptocurrency. Marshall Hayner, CEO of Metal Pay, is one of those clamoring for more definite explanation to create an aura of legitimacy around the crypto-coin.
According to Yahoo! Finance the Metal Pay executive raised questions on the validity of the cryptocurrency, asking ones such as "is bitcoin a currency or commodity?"
For whatever use, the Metal Pay CEO said that it's highly likely there will be more rules implemented to control bitcoin moving forward. Blockchain and bitcoin will also receive a more definite definition once this gets implemented, he continued, even as the government starts to adopt its use in more and more transactions to foster efficiency and transparency.
He says Metal Pay already has a mechanism explaining to people exactly what crypto are. There is a source that the company is using to spread curated content on the explanation of bitcoin. He added that they're going to start allowing the coins and companies in the space to explain their business and bitcoin in general.
With more explanation on what a "golden cross" and cryptocurrency is, analysts expect that cryptocurrency will start going down the path where it's no longer a novelty, but a way of life.