Bitcoin’s Golden Cross Hints at a Push Towards $25k and Higher

Bitcoin has a pending golden cross between the 50-day and 200-day moving averages. Past golden cross events have resulted in Bitcoin experiencing considerable gains.

Source: Pixabay

Bitcoin has had an impressive first month of 2023 by pumping 40% from a January open of $16,541 and closing the month at $23,125. The first few days of February have also been bullish, with Bitcoin hitting a local peak of 24,355 on the second day of the month.

Bitcoin Has a Pending Golden Cross on the One-day Chart

The one-day BTC/USDT chart below shows that Bitcoin is in a consolidation phase between the $23.8k resistance and the $22.3k support level. At the same time, a golden cross between the 50-day (red) and 200-day (green) moving averages is brewing and likely to occur in the following week.

Source: Trading View

A golden cross is usually considered a bullish event. Bitcoin could gather enough momentum to blast past the $23.8k ceiling and head towards the $25k resistance level, slightly above the 200-week (black) moving average.

Bitcoin’s Previous Golden Crosses Have been Followed by Significant Gains

Zooming out on the BTC/USDT chart reveals that Bitcoin’s past golden crosses — highlighted in blue below — have mostly been followed by significant gains by the number one digital asset. The only exceptions — highlighted in orange below — were in June 2014 and February 2020. The latter was right before the historic Coronavirus crash of March 2020.

Bitcoin’s golden cross events since 2010. Source: Trading View

But Bitcoin is Due for a Pullback

However, circling back to the first one-day BTC/USDT chart above, it can be observed that Bitcoin’s MFI (green) is hinting at an ongoing pullback that could lead to a retest of the $22,300 support level.

Bitcoin’s MACD has also crossed the signal line in a bearish manner above the baseline, and its RSI (red) is in overbought territory, further hinting that a pullback is likely to happen in the short term.

Therefore, despite the pending golden cross happening sometime next week, a move to higher levels will not be a straight line and will occur once Bitcoin either consolidates at current levels around $23k or falls to $22.3k.

~By John P. Njui~