The price movement of Bitcoin over the past 24 hours has been unremarkable. After consolidating for many days within a tight range, the market broke through the support area that turned into resistance at $105,503 earlier this week and began to rise sharply in the last trading day. This allowed Bitcoin to reach a new all-time high and shows no signs of slowing down.
Interestingly, technical analysis indicates that this price increase stems from a golden cross between the 50-day and 200-day moving averages, but FX_Professor presents a different view on this famous golden cross.
Analyst disputes the hype of the Golden Cross as a lagging signal
In a recent analysis published on TradingView, FX_Professor discussed a different perspective on the golden cross of Bitcoin. While most market commentators interpret this crossover of the 50-day simple moving average over the 200-day as a strong bullish confirmation, this analyst dismisses it as a lagging indicator. The analyst describes it as a party afterward, where retail investors arrive late.
Instead of waiting for the golden cross to flash green, FX_Professor notes that pressure zones before the indicator are the true value signals. In the case of Bitcoin's price action in recent months, the analyst points out the $74,394 and $79,000 areas as accumulation and early positioning zones, before the golden cross appeared. Therefore, by the time the cross recently occurred, Bitcoin's price action had increased significantly.
Golden Cross is often used by traders as a signal to enter a buying position, as it suggests that the asset's price is likely to continue rising. However, this analysis follows the trend among experienced traders, who consider the golden cross as a confirmation that is more delayed than a triggering factor for a price surge.
Early entry zones and more critical structures, the analyst stated
According to FX_Professor, indicators like EMA or SMA can be useful but should never precede understanding price structure, trend lines, and pressure zones in real-time. He shared a snapshot of his own Bitcoin price chart, combining a custom EMA with a characteristic pennant method to detect where price stress begins to form. On the chart, it can be seen that the earliest entry points were in April when Bitcoin bounced off the support level around $74,000, long before confirming the crossover.
Now, as Bitcoin moves towards the next target area near $113,000, the analyst's strategy continues to prove itself in real-time. However, confirming a golden cross remains a bullish signal for Bitcoin's price action in the future, even if the price surge has already reached halfway to its peak.
At the time of writing, Bitcoin is trading at $110,734. This marks a slight pullback from the new all-time high of $111,544, recorded just three hours earlier. The price of Bitcoin is still up 3.1% in the past 24 hours and may reach a new all-time high before the weekly close.