Bitcoin sees ‘golden cross’ — is it a bullish signal or false signal?
Yahoo Finance’s Ines Ferre joins the Live show to break down bitcoin’s moves ahead of Fed Chair Powell's speech Tuesday.
RACHELLE AKUFFO: All right, well, Bitcoin making moves that may signal a move towards highs. But the future picture of the crypto token remains muddy. Now, this is as investors keep an eye on comments from the Federal Reserve Chair Jerome Powell this afternoon.
So here to discuss is Yahoo Finance's Ines Ferré. Ines, that's a lot to watch here for crypto. It's certainly changed a lot.
INES FERRÉ: Yeah, that's right. And Bitcoin bulls have been talking about the golden cross, which they saw yesterday. So we have a chart that we want to show you. This is the chart for Bitcoin. But we want to show you a full screen of that golden cross.
And the golden cross is when the 50-day moving average crosses above the 200-day moving average. And we saw it here yesterday. We also saw that happen in September of 2021. And so that's afterwards where you hit the all-time high. So it's a bullish signal. Now, the contrarian to the golden cross is the death cross. That's where the 50-day moving average crosses below the 200-day moving average. And the last time that we saw that was in January of 2022.
So if we just pull back the Bitcoin chart that we have on our touchscreen screen on our interactive board, you can see here-- I'm gonna pull up Bitcoin over on here. It's right now down 3/10 of percent. But this is the three-year chart. And you can see the move to the upside after that golden cross. And you saw the golden cross here yesterday.
Again, this is a bullish signal but not all of the times. Because when you have choppy trading, it may be a false signal. And to put it in Jared Blikre's words, my colleague here. He said, moving average crossovers are great for long-term trend following. But if there's no trend, you get chopped up.
Now, what I like to look at is the US Dollar Index because oftentimes we have seen that when the US dollar goes up, you see asset prices go down. And that's when you see-- also we've seen Bitcoin pulling back, as well. But certainly, this is something to talk about among the bulls. Rachelle.
RACHELLE AKUFFO: Indeed. Ines Ferré, thank you so much.