Bitcoin is currently retesting a "golden cross," a technical pattern that analysts believe could trigger a major rally if broken. The golden cross is a bullish signal that occurs when a short-term moving average crosses above a long-term moving average. Historically, it has been a precursor to significant upward price movements for Bitcoin.
According to crypto market analyst Mister Crypto, previous golden crosses have led to substantial gains, such as a 2200% increase in 2017 and 1190% in 2020. The analyst shared this observation in a post on X, noting the potential for another significant rally if Bitcoin breaks above the current resistance.
Currently, Bitcoin is consolidating around $111,000, following market losses on October 10th that were attributed to trade war concerns between the U.S. and China. Despite these recent losses, analysts suggest that a breakout above $110,000 could trigger the next major upward move. However, Bitcoin is down 9.45% on its weekly chart and 12.16% away from its all-time high amidst this corrective phase.
Other analysts point to the MVRV momentum indicator and the 180-day simple moving average (SMA) potentially forming a golden cross, which could signal a shift in market sentiment and reinforce the idea that the recent correction is part of a broader bull run.
Despite the optimism surrounding the golden cross, some analysts remain cautious. Bitcoin has been in a downtrend since January, losing over 29% from its all-time high. Bulls need to hold current levels and push above the $88,000 - $90,000 zone to confirm a recovery and retest previous highs. Overcoming this resistance level is crucial for confirming a recovery rally. Without a strong push above this threshold, Bitcoin risks losing its short-term momentum and slipping back toward lower demand zones.
However, some market watchers believe that Bitcoin is undergoing a healthy correction within a broader bull cycle and that the recent dip could present a long-term buying opportunity, especially if key support levels hold and bullish signals emerge.
