Total Crypto Market Triggers Golden Cross, Despite “Deadly” Bitcoin Counterpart
The chart representing the total crypto market cap in aggregate has triggered a golden cross on daily timeframes.
While the crossover of two important 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 over crypto, or will the golden cross help to pull the entire market — including BTC — higher?
Total Crypto Chart To Golden Cross Just Below $1 Trillion
The total cryptocurrency chart is calculated by TradingView and sums up all the different crypto assets out there into one price index. It helps tell the world exactly how much crypto as a whole is valued.
Currently, the total crypto market cap 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 following tonight’s daily close. A golden cross occurs when a short-term moving average crosses above a long-term moving average from below.
Related Reading: Bitcoin Golden Cross Versus Death Cross: Why The Outcome Is Critical
In this case, the crossover is of the 50-day and the 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-sounding opposite of a golden cross is a death cross. Bitcoin, the most significant weight in the total market cap chart, could confirm a death cross on the weekly timeframe.
If Bitcoin doesn’t rally by Sunday, the weekly could confirm a death cross | BTCUSD on TradingView.com
Weekly timeframe signals tend to be more dominant than daily signals, which could mean bears take back control over crypto. But if crypto rallies hard enough it could uncross the weekly bearish crossover in BTC and drag the rest of the market higher — Bitcoin included.
Related Reading: Bitcoin Weekly RSI Reaches Line Between Bear & Bull Market
Notably, if BTCUSD closes at these levels by week’s end, it would mark the first time in Bitcoin history that the weekly signal confirmed.
Regardless of Bitcoin’s weekly outcome, the total crypto market cap should golden cross today after the daily close, making the rest of the week a nail biter until the very end.
While everyone is talking about the #Bitcoin death cross, the $TOTAL crypto market cap has golden crossed on the daily. Weekly > Daily, but bulls have six days left to uncross the death cross. Going to be an interesting week. pic.twitter.com/Oz4UMlXPfZ
— Tony “The Bull” (@tonythebullBTC) February 13, 2023
Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com