Bitcoin Forms "Golden Cross"

U.Today – Bitcoin (BTC) recently formed a "golden cross," a technical chart pattern that historically signals potential price gains. This pattern occurs when the 50-day moving average crosses above the 200-day moving average, indicating bullish momentum. In Bitcoin's case, the 50-day SMA has crossed above the 200-day SMA, confirming the golden cross.

Traders and analysts monitor this formation closely, as it has historically preceded price rallies in Bitcoin and other assets. While the golden cross doesn’t guarantee further gains, it has been a positive indicator during previous Bitcoin bull markets.

A trader who held BTC between the first two golden crosses and the one in May 2020 would have realized triple-digit percentage profits. Following the golden cross in October 2023, Bitcoin's value doubled to nearly $74,000 by mid-March.

However, moving average crossovers often receive criticism for being a lagging indicator, as they can mislead traders. Bitcoin's latest death cross, the opposite of a golden cross, had previously trapped bears, yet the price recovered above $66,000 about a month later.

What Comes Next?

As of now, BTC is up 2.37% in the last 24 hours, priced at $68,610 after hitting intraday highs of $68,758. Bitcoin began to rebound after reaching a low of $65,500 on October 25. The bulls continue to maintain the upward trend; if Bitcoin closes positively today, it will mark three consecutive days of gains.

Buyers need to push the price above $69,550 to signal a resumption of the upward trend towards the higher range of $73,777. There is resistance around $70,000, but it might be surpassed. If successful, Bitcoin could surge to $72,000, although bulls will face significant resistance from bears.

On the flip side, a breakdown could give bears an advantage, with BTC closing below $65,000, potentially dropping below the 50-day moving average of $63,254 and towards critical support at $60,000.

On a macroeconomic level, investors will continue to scrutinize central bank commentary following last week's IMF meetings in Washington, D.C. Federal Reserve policymakers are currently in a blackout period, refraining from comments ahead of next week's interest rate decision.

This article was originally published on U.Today