Mon May 29

Good Morning. Our Referral program is live. Please see the bottom of the letter for more details 😀 .

We are excited to launch our long-awaited Money Monday series! Every Monday, we will cover ways to make money in web3 which will include trading ideas, identifying patterns, coins to watch out for, market news, and more.

Ah, the magical golden cross pattern! It's the stuff that gets crypto traders all excited, promising them a ticket to profitable opportunities. And you know what? It has quite the track record in those old-fashioned traditional markets too!

So, here's the deal: the golden cross likes to show up before sustained uptrends, in sharp contrast to its gloomy cousin, the death cross. Just take a peek at the S&P 500 since 1970 – after a golden cross makes its entrance, the market has been known to deliver an average gain of about 15% within a year. Not too shabby, right?

But let's not forget about our favorite crypto asset, Bitcoin BTC. The golden cross has made quite a spectacle on Bitcoin's daily charts since 2010, making a grand appearance seven times. And get this, five out of those seven instances led to massive bull runs! Talk about a golden touch!

Now, let's dig into the nitty-gritty. The golden cross is a fancy term for when the short-term moving average (MA) crosses above the long-term MA. It's like a signal that buying interest has been on the rise in the past 50 days compared to the previous 200 days. It's all about spotting that momentum!

But hey, before you go all-in based on a golden cross, remember to consider other technical indicators too. Don't be fooled by fake breakouts! Try using the relative strength index (RSI) to get a sense of overbought and oversold conditions. You don't want to fall for a golden trap, do you?

Now, let's rewind to February 2020. Bitcoin's golden cross made its appearance, and the price soared to new heights. But hold your horses! The RSI was flashing warning signs of overbought conditions, and sure enough, the price took a nosedive, thanks to a certain global pandemic. Timing is everything, my friend!

So, here's the golden rule: Golden crosses aren't foolproof. They're like your trusty sidekick, helping you analyze short and long-term price actions. And if you really want to jazz it up, throw in some Moving Average Convergence Divergence (MACD), Stochastic RSI, or other momentum indicators. Don't be too hasty, wait for the right moment to strike!

Oh, and remember, in volatile markets, you can mix things up by changing the moving averages. Get creative! The 20-day MA and 50-day MA combo has proven handy for spotting short-term trends. It's like a mini golden cross for speedy analysis!

But hold your golden horses! Golden crosses don't guarantee gains. Always approach them with caution. False signals can happen, and blindly following them might lead to losses. Confirm, confirm, confirm! Use those extra technical indicators to make sure the golden cross is the real deal.

So, there you have it, my fellow crypto adventurers. The golden cross, is a shining star in the charts. Keep your eyes open, use those indicators wisely, and may your trades be as golden as the cross itself!

Hey there! Just a friendly reminder: this article is not here to provide investment advice or recommendations. We're all about sharing information and knowledge, but when it comes to your investments and trading moves, it's important to remember that there's always risk involved. It's crucial for you, as the reader, to conduct your own research and analysis before making any decisions. So, grab your detective hat and dig deep into the information to make informed choices. Happy researching!

21