Bitcoin forms a golden cross and points to a big rise: what to expect?
The Bitcoin (BTC) market is at a critical point, suggesting a possible significant rally in the coming months. After a period of consolidation that has lasted seven months, the price of the cryptocurrency has once again shown strength, and the technical pattern known as the “golden cross” is about to form.
This pattern is considered a strong bullish indication by technical analysis analysts. Therefore, many investors are keeping an eye on this movement.
The golden cross occurs when the 50-day simple moving average (SMA) crosses above the 200-day moving average. This technical signal points to a possible long-term trend change to bullish. This indicates that short-term demand for Bitcoin is exceeding expectations.
Currently, BTC is in a mini uptrend, with rising tops and bottoms, something that breaks the downward trend of recent months.
Bitcoin's last gold crossover occurred in October last year and preceded an all-time high that took the price from $28,000 to $73,700 in just five months, a 160% increase. Now, with the 50-day SMA rising and the 200-day SMA falling, this technical pattern could repeat.
October: historically favorable month for Bitcoin
Aside from the looming golden cross, October historically stands out as a bullish month for Bitcoin. Several analysts believe that the current scenario could drive the price to new records. In recent years, October has been one of the most profitable months for BTC traders. And history could repeat itself once again.
This optimism is reinforced by macroeconomic and political factors. The United States presidential elections, for example, could be a possible bullish catalyst for the cryptocurrency market.
The support of candidates like Donald Trump for the cryptoactive industry and his plan to add Bitcoin to national reserves, if elected, are points that could increase demand for cryptocurrency.
Despite the optimism, Bitcoin faces resistance at the $68,000 level, a price it has not touched for three months. This resistance is natural as the price has suffered similar difficulties approaching $66,000 and $65,000 recently.
However, once it manages to overcome these barriers, traders expect Bitcoin to reach the $70,000 and $73,000 levels again.
The formation of the golden cross could be the trigger to break these resistances and possibly take Bitcoin to new all-time highs. If the pattern is confirmed, the market could enter a new bullish cycle, with BTC reaching even more impressive numbers.