By EWN • 06 February 2023 • 10:25
We’re now in February and if you’re on the prowl for a profitable meme coin, Big Eyes Coin may be your answer. It’s no secret that the crypto market suffered a severe drought and the economy’s future remains uncertain with macro headwinds pushing stocks into a volatile place. But every so often, some cryptocurrencies show enough benefits to combat the downside of a recession. Big Eyes could be that coin with its endless list of positive features. It offers NFT access to a Sushi Club, regular reward drops, community benefits, regular news updates, etc.
Traders are looking for any sign that the crypto market could experience a resurrection this year. The bitcoin halving event is still a year away slated to happen in 2024. But an interesting repeated event is fast approaching and may spur on the bull rally that so many committed investors are waiting for.
The Golden Cross is an occurrence that happens every few years and usually spells excellent news for the stock market. When the 50-day moving average moves ahead in value from the 200-day average of a major index, it is called a golden cross event.
According to Dow Jones Market Data, The S&P 500 index has had 52 golden crosses since 1930. 71% of the time, stocks traded higher one year later. This shows it is not a solid guarantee of performance but it can be used as one of many indicators that could show positive performance.
Notable exceptions to this rule include the golden cross period that happened on April 1st, 2019, the dot-com bubble in 1999, and the golden cross in 1986, before the “black Monday” stock market catastrophe.
And now Bitcoin is going to have its 7th golden cross soon. Assuming that the crypto market does not experience a severe downturn, Bitcoin’s 50 simple moving average should move ahead of its 200 simple moving average by the 10th of February.
But how well does Bitcoin perform in the event of a golden cross? According to analysis from crypto news, if you purchased Bitcoin during all 7 golden crosses and held it for 90 days, you would have profited from price movement 4 out of 7 times. The price would be flat 1 out of 7 times and down 2 out of 7.
If you chose to hold it for 365 days, you would have profited 5 out of 7 times. That means implementing a long-term outlook generally tends to improve your return in a golden-cross event.
As always, it is essential to use funds you know you can afford to lose, as a golden cross event is not indicative of a guaranteed return.
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