How does crypto revenue increase when short-term and long-term price indices work together

The biggest challenge in making profits in the cryptocurrency market is buying at the right time. From Bitcoin to altcoins, the value of each asset changes moment by moment. Fortunately, modern traders can use various technical tools to forecast market movements. One of the most effective is the Bullish Cross(—a traditional indicator widely used from stocks to crypto markets.

Why Are Price Indicators So Important?

In the world of investing, a bullish cross is the moment when market sentiment shifts from negative to positive. It occurs when the short-term moving average )usually the 50-day simple moving average, or SMA( crosses above the long-term average )200-day SMA(. This event is not just a numerical occurrence—it reflects a change in the power dynamics between buyers and sellers in the market.

Currently, Bitcoin is trading at $87.05K, down 1.54% in the last 24 hours. Amid this short-term volatility, traders use price indicators to identify long-term opportunities.

How Does a Bullish Cross Work?

Significance of the Short-Term Moving Average

The 50-day price average is designed to capture recent market trends. It is simply the average of the closing prices over the last 50 days. When this average trends upward, it indicates that recent buying pressure has strengthened. Investors interpret this signal as “the market is gaining strength.”

The Long-Term Trend Line

The 200-day average is used to understand the overall health of the market. This line does not change rapidly but reveals the deeper trend of the market. When it trends upward, it indicates the market is in an overall bullish cycle. When it trends downward, the market is in a weak phase.

A bullish cross occurs when the 50-day line crosses above the 200-day line. This is a strong signal that says: “Short-term strength is linked to long-term potential.”

Real-World Example: Bitcoin’s 2024 Story

In January 2024, the approval of 11 spot Bitcoin ETFs by the SEC and the upcoming halving event helped create a strong bullish cross on Bitcoin’s chart.

In March 2023, Bitcoin’s 50-week average was below the 200-week average—an indication of a bear market. However, in the last quarter, Bitcoin revived amid waves of optimism. Even while staying within the narrow range of $30,000 to $35,000, the price gradually moved upward, forming the 50-week SMA. Then, when SEC approval arrived, the bullish cross was finalized, and market sentiment shifted completely.

Traders who identified this pattern saw it as an ideal opportunity to accumulate Bitcoin.

Bullish Cross vs. Bearish Cross: Two Different Market Stories

A bearish cross is the opposite of a bullish cross—it occurs when the short-term average falls below the long-term average. This moment indicates selling pressure and often signals the start of a deep market decline.

In December 2022, when FTX created turmoil in the market, Bitcoin experienced a bearish cross. This wave of selling was not just a price decline—it was a complete change in market sentiment.

Creating an Effective Trading Strategy

Understand the Market Context

A bullish cross alone does not work in isolation. Global economic conditions, regulatory decisions )such as SEC approval(, and major industry events )such as Bitcoin halving( all influence the reliability of this signal. A cautious trader always considers the context.

Verify with Trading Volume

When a bullish cross forms, trading volume should increase sharply. This shows that many buyers are genuinely interested. If volume remains low, the signal may be weak and unreliable.

Also, monitor asset flows on exchanges. Inflows indicate selling pressure, while outflows suggest long-term holding.

Combine with Other Indicators

Mix the bullish cross with other technical tools like RSI, MACD, or Bollinger Bands. This strengthens your decision-making and reduces the risk of false signals.

Be Prepared for False Signals

Not every trading signal is perfectly accurate. Sometimes, a bullish cross occurs but the expected upward trend does not follow. That’s why risk management is essential.

Implement Strong Risk Management Strategies

Use stop-loss orders and risk only a small percentage of your capital. Never invest more than you can afford to lose. A market crash can wipe out anyone quickly.

Be Aware of Indicator Delays

Remember that bullish crosses are based on historical data. They are merely reflections of past market movements. Past performance does not guarantee future results. Markets are always unpredictable.

Final Advice

Success in crypto trading requires a combination of technical knowledge and market awareness. The bullish cross is a powerful tool, but it should be part of a broader strategy. Understand the market context, use multiple indicators, manage risks carefully, and keep learning.

The crypto market is highly dynamic and often unpredictable. Those who succeed are willing to adapt their strategies and learn from every market cycle.

) To learn more

1. Bollinger Bands and their application in crypto trading
2. Dow Theory and market analysis
3. How to use the Williams %R indicator
4. RSI indicator and practical applications
5. Stochastic RSI and advanced trading strategies
6. MACD indicator and its role in crypto