- Bitcoin has seen a golden cross.
- The indicator has sparked significant speculation about the asset’s next move.
- The Golden Cross is not the be-all and end-all signal some tout it to be.
Amid a tight matchup between bulls and bears, the crypto market has looked indecisive in recent months as several rallies have quickly been followed by equal moves downward. Over the past 24 hours, however, traders may now have reason to believe that this stalemate is about to come to an end as Bitcoin (BTC) has gotten its much-celebrated ‘Golden Cross .’
Is it finally time for BTC to make its next move up?
Bitcoin (BTC) Golden Cross Sparks Excitement
Over the past 24 hours, BTC’s price chart has shown a Golden Cross on its daily candlestick chart, sparking significant excitement among investors.
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The Golden Cross occurs when the 50-day moving average exceeds the 200-day moving average. It is often used to confirm an uptrend in the market, as it often indicates a shift in momentum to the upside.
Reacting to the recent Golden Cross, crypto trader “0xMarketwizard.eth” tipped it as a sign that BTC was ready for a “big breakout.” Similarly, “MouCrypto1” suggested the technical indicator was a “strong” bullish signal.
These views come as the last time BTC saw a Golden Cross; it rallied from around the $35,000 price point to fresh all-time highs near the $74,000 price point within a few months. Interestingly, this occurred around this time last year.
Despite these sentiments, the Golden Cross is not the be-all and end-all signal that some tout it as.
A Lagging Indicator
The Golden Cross is derived from moving averages, considered lagging indicators. As such, it largely only occurs after the price has already moved upward. At the same time, it can sometimes be a false signal, as a price rally does not always follow it.
Still, over the past 24 hours, BTC’s price has surged over 2% from around the $68,000 price point to, at one point, trade above $69,000, continuing a rally that kicked off over the weekend. Several analysts have pointed out that the asset has broken out of a months-long downward channel and found support above the pattern.
Amid the recent price action, several analysts have tipped the asset to reach above the $70,000 price point for the first time since July 2024. Whether BTC will be able to achieve this feat this week will, however, likely depend on how markets react to several US economic releases scheduled for this week, including GDP and inflation data.
On the Flipside
- The Golden Cross largely occurs only after the price has already moved upward.
- The Golden Cross can sometimes be a false signal.
- Weekend crypto rallies have often been followed by corrections at the start of the new week.
Why This Matters
Decisive and clear upward Bitcoin momentum could spark a resurgence across the broader crypto market as other assets tend to move in lockstep with the market leader.
Read this for more on Bitcoin:
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