Bitcoin's Golden Cross Fails to Deliver Again

Bitcoin's recent rally has been marred by a familiar pattern - the failure of a golden cross to deliver on its promise of a bullish rally.

A golden cross forms when the price's 50-day moving average rises above the 200-day moving average, and it is conventionally viewed as a signal that the price will continue to rise.

However, historical data suggests that this indicator often fails to live up to expectations. In fact, Bitcoin has tended to generate much of its return in the lead-up to the crossover, before pulling back shortly after the signal appears.

The latest occurrence fits this pattern. Bitcoin climbed from $62,000 to $82,000 ahead of the golden cross, which formed at the beginning of the week, and has since fallen from around $80,000 to $77,000.