Market Wrap: Bitcoin Flashes a Golden Cross, Sparking Hopes of a Super Bull Run
Bitcoin, the world’s largest cryptocurrency, has recently flashed a golden cross on its price chart, a technical indicator that has sparked hopes among investors and traders of a super bull run.
The ‘golden cross’ is a common technical analysis term for bullish chart patterns. It occurs when a short-term moving average, typically the 50-day moving average, crosses above a long-term moving average, typically the 200-day moving average, on a price chart.
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Previous Analysis
Last week, Bitcoin attempted to break the $25,000 resistance level but faced selling pressure, causing its value to drop. However, positive momentum came back as buyers returned to the $25,000 level.
BTC’s price needed to surpass the $25,000 barrier to continue its upward trend toward the $30,000 range, which is a psychological price point. At the time of writing, Bitcoin was trading at $23,758.00. The double top pattern indicated a possible further bearish move towards the $22,000 support.
Bitcoin Next Week
BTC/USD Chart by Tradingview
The 50-day moving average just crossed above the 200-day moving average, a popular bullish signal in the crypto and financial trading world. Bitcoin dropped back to the $22k area (zone of the cross) and found pretty healthy support, from which it bounced back up strongly and made for the $25k mark.
$25k proved a stronger resistance than the bulls previously, though. Now letting out some steam, the bulls (or, shall I say, ‘the manipulators’) are gearing up for another try at the 25k resistance.
Remember that this is a long forecast on BTC, but it is short-term. A sharp spike upwards to $33k, then a flash crash to less than $0.1 and back up to $10k is expected soon (purely off the charts). Fundamentals aside, the strong support provided by the 50-day EMA will give Bitcoin bulls the extra juice they need to break up over $25k.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.
