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 upward. Although the technical indicator is no more than a simple indicator of an asset’s momentum and recent price developments, it is one that is particularly followed and monitored by traders and large capital allocators in the financial system.
Below are the historical returns across different time frames for golden crosses in the entire history of bitcoin:
Although technical indicators are near irrelevant to the long-term adoption of bitcoin as a global monetary network, the golden cross is encouraging for momentum-driven traders and may signal that the next leg of bitcoin is near.
Gary Gensler comes to “Crypto”
The U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler testified before the U.S. Senate Banking Committee today with crossword puzzles set on cryptocurrency trading and lending platforms, stable value coins and the legal status of offering and selling cryptocurrencies that can be classified as securities. In a document highlighting Gensler’s key points presented today in advance, the following was stated:
“Make no mistake: to the extent that there are securities on these trading platforms, they are required by our laws to register with the Commission unless they are eligible for an exemption.”
In particular, Gensler also took a shot at Coinbase, emphasizing that it “is not registered with us, even though they have tokens on their stock exchange that may be securities,” on the back of CEO Brian Armstrong’s tweet-based SEC earlier in September, calling the commission “sketchy.”
This is the key difference between “cryptocurrencies” and bitcoin. Bitcoin is sufficiently decentralized, and the immaculate notion of the asset class sets it apart from any other “crypto” out there. To quote Gensler once again, this time from comments that came back in early August this year:
“In that work, I came to believe that even though there was a lot of hype that came true in the crypto field, Nakamoto’s innovation is real. Furthermore, it has been and could continue to be a catalyst for changes in finance and money … At its core, Nakamoto tried to create a private form of money without any central intermediary, e.g. A central bank or commercial banks. ”