Bitcoin’s daily price chart has flashed a golden cross, adding a potentially bullish signal to the cryptocurrency’s longer-term outlook. The development is likely to attract attention from traders watching for signs of a broader trend reversal.

The pattern forms when the 50-day simple moving average moves above the 200-day average. This crossover is generally interpreted as a sign that short-term momentum has strengthened relative to the longer-term trend and could support further price gains.

Bitcoin has produced 12 golden crosses in its history, but the indicator has not consistently led to extended rallies. Only three of those signals remained intact for an entire year, with those cases producing an average gain of about 250% over the following 12 months.

The remaining nine instances with sufficient three-month data resulted in a much more limited average return of 24.9%.

That track record highlights why the latest golden cross should not be viewed as a guaranteed signal of a prolonged bull market. Historically, the setup has resulted in early bull traps roughly three times as often as it has preceded multi-year advances.

Still, the crossover provides Bitcoin bulls with another technical development to watch as the market attempts to maintain its recent strength.

Bitcoin was trading near $78,650 at the time of writing, down 0.6% since midnight UTC, according to CoinDesk data.