As investors seek to forecast the next price movement, Bitcoin’s (BTC) surge seems to have stalled below the $23,000 barrier. As uncertainty abounds, investors keenly monitor the golden cross formation as a technical indicator.
Bitcoin is nearing a probable golden cross formation pattern, as the 50-day moving average (MA) approaches crossing over the 200-day MA, according to a January 26 tweet from the Bitcoin Archive Twitter account.
One of the significant golden crosses in 2019 caused Bitcoin’s value to surge while the asset was trading in the vicinity of $5,000. In 2021, Bitcoin reached an all-time high of over $69,000 due to the ensuing rise.
The golden cross is primarily a positive indication indicating that Bitcoin’s short-term trend is going higher and might possibly result in a protracted rise. Historically, the golden cross formation has foreshadowed Bitcoin price gains.
This perspective pattern might signify the beginning of a fresh bull market for Bitcoin and other cryptocurrencies despite market concern surrounding the overall health of the digital assets sector.
In general, the impending golden cross formation is a bullish indicator for the cryptocurrency market and may portend a prosperous future for Bitcoin. In addition, it will be of interest whether it indicates a prolonged rally or only a momentary price spike, given that other short-term technical indications are negative.
On the other hand, according to Finbold, Bitcoin’s prospects continue to be uncertain, with the first cryptocurrency beginning at the feared death cross. The death cross indicates a bearish trend when the 50-day moving average falls below the 200-day moving average. Specifically, as of January 25, on-chain statistics suggested Bitcoin was facing the first one-week death cross in history.
In addition, according to crypto specialist Steve Courtney, if Bitcoin accomplishes the one-week death cross, there is a possibility of a one-day golden cross on February 7.
At press time, Bitcoin was trading at $23,113, a daily increase of almost 1.5%. On a weekly basis, Bitcoin has gained more than 10%.
Similarly, a summary of Bitcoin’s one-day technical analysis correlates to a ‘buy’ sentiment reading of 14, while moving averages indicate a strong buy’ reading of 13. Elsewhere, the oscillators for this asset are set to sell at 3.
Notably, Bitcoin continues to meet resistance near $23,000, and a break above this level might pave the way for greater gains.
Also Read: Jim Cramer of CNBC warns investors to avoid cryptocurrencies