Bitcoin is experiencing a slight correction following a bullish technical event known as the 'golden cross.' Despite optimism for the continuation of the uptrend, market data indicates that a brief decline often follows this pattern.
The recent price movement aligns with historical trends, leading some analysts to anticipate a short-term dip before a stronger rise. As Bitcoin's price currently approaches $105,000, market sentiment appears cautious but positive.
● The golden cross triggers a historical pattern in Bitcoin's price.
The golden cross occurs when the 50-day moving average of Bitcoin's price crosses above the 200-day average, which is typically seen as a strong bullish signal.
However, according to trader Cyclop, previous cycles reveal a different pattern. He noted that Bitcoin often drops about 10% shortly after this cross, before bouncing back to its historical highs.
In February 2021 and March 2024, Bitcoin followed a similar trajectory. Both instances saw a decline in prices shortly after the golden cross appeared, followed by sharp increases. Cyclop explained that this pattern acts as a liquidation phase, as it flushes out weak holders before the real breakout occurs.
The price of Bitcoin fell by about 8% earlier this week, in line with the expected pullback. The market began to recover near the $104,000 to $105,000 area, showing signs of buyer activity.
Cyclop confirmed that although momentum above $110,000 seems exhausted, support around the current levels remains strong.
The recent slowdown in response to positive news indicates market exhaustion at higher levels. Traders are now focused on whether the support level at $105,000 will hold, as a rebound could initiate the next phase of the uptrend.
A critical breakout above $106,673 may renew bullish momentum, while a drop below $102,268 could lead to a deeper correction.
● The Bitcoin chart shows a state of consolidation with mixed indicators.
The daily Bitcoin chart on TradingView indicates a phase of consolidation following its recent rise.
The price is currently trading at $105,380.6, slightly above the lower range of the Bollinger Bands, indicating short-term support. The Relative Strength Index (RSI) is settling at 53.44, suggesting neutral momentum without any extreme conditions.
Meanwhile, the MACD indicator shows weak bullish pressure, with the line sliding below the signal level and negative histogram bars.
However, the flattening of the histogram levels indicates a potential slowdown in selling. Trading volume remains weak, reflecting market indecision and the possibility of a trend halt.
According to Cyclop, if Bitcoin maintains a support level above $105,000, it is likely to see a rise towards $150,000. If the price drops below $100,000, a temporary correction may occur towards a range between $90,000 and $95,000.
The overall market structure remains bullish, but traders are taking a cautious approach amid near-term volatility. Currently, long-term investors are focusing on leading assets like BTC, ETH, and SOL, with an emphasis on selected altcoins with strong fundamentals.
With the confirmation of the golden cross, all eyes are on the next major move in the BTC price cycle.
