According to PANews, while many anticipate Bitcoin reaching $140,000, the situation may not unfold as expected. Historical analysis and market data suggest a potential slight decline for Bitcoin.
The 'golden cross,' a technical indicator occurring when the 50-day moving average surpasses the 200-day moving average, is typically seen as a bullish signal. However, historical data indicates that Bitcoin often experiences a 10% drop following a golden cross before rebounding to new highs.
For instance, in February 2021, Bitcoin fell 10% within seven days after the 50-day moving average crossed above the 200-day moving average. Similarly, in March 2024, Bitcoin dropped 11% before surging to a new high.
This pattern suggests that the golden cross may serve as a strategic shakeout by major players to eliminate weak hands, paving the way for a genuine price breakout. This breakout often triggers a wave of buying, fueled by FOMO (fear of missing out), further driving the price upward.
Recently, Bitcoin experienced an 8% pullback, consistent with past trends, followed by a rebound, indicating strong buying interest around the $104,000 to $105,000 range. However, upward momentum above $110,000 appears to have waned.
Looking ahead, if Bitcoin maintains support at $105,000, it could aim for the $150,000 mark, continuing the golden cross pattern. Conversely, a drop below $100,000 might lead to a minor retreat to the $90,000 to $95,000 range.
For those without a position, now may be an opportune time to enter the market, as the short-term outlook remains bullish. However, a cautious approach is advised, focusing on strong blue-chip cryptocurrencies like Bitcoin, Ethereum, and Solana, along with select promising altcoins such as Cookie, W, and IOTA.
For those already invested, it is recommended to adhere to their existing strategy, whether it involves selling or increasing their holdings.
