Bitcoin is heading for a golden cross on the daily chart! A golden cross is when the 50-day moving average passes the 200-day moving average to the upside. While the technical indicator is nothing more than a simple indicator of an asset’s momentum and recent price trends, it is one that is particularly followed and watched by traders and large capital allocators in the financial system.
Below are the historical returns across various timeframes for golden crosses throughout the history of bitcoin:
Source: Kraken Intelligence
While technical indicators are near irrelevant in terms of the long-term adoption of bitcoin as a global monetary network, the golden cross is encouraging to momentum-driven traders and could signal that the next leg up for bitcoin is close by.
Gary Gensler Is Coming For “Crypto”
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testified in front of the U.S. Senate banking committee today with crosshairs set on cryptocurrency trading and lending platforms, stable value coins, and the legal status of offering and selling crypto tokens that may be classified as securities. In a document highlighting Gensler’s key points made today released beforehand, the following was said:
“Make no mistake: To the extent that there are securities on these trading platforms, under our laws they have to register with the Commission unless they qualify for an exemption.”
Gensler also notably took a shot at Coinbase, highlighting that it is “not registered with us even though they have tokens on their exchange that may be securities,” on the back of CEO Brian Armstrong’s tweet thread bashing the SEC earlier in September, where he called the commission “sketchy.”
This is the key distinction between “cryptocurrencies” and bitcoin. Bitcoin is sufficiently decentralized, and the immaculate conception of the asset class separates it from every other “crypto” out there. To once again quote Gensler, this time from comments made back in early August of this year:
“In that work, I came to believe that, though there was a lot of hype masquerading as reality in the crypto field, Nakamoto’s innovation is real. Further, it has been and could continue to be a catalyst for change in the fields of finance and money… At its core, Nakamoto was trying to create a private form of money with no central intermediary, such as a central bank or commercial banks.”