According to Cointelegraph, Bitcoin's recent golden cross on the daily chart is generating optimism among traders, as it historically signals significant price increases. The golden cross, which occurs when the 50-day simple moving average (SMA) surpasses the 200-day SMA, has been associated with substantial gains, sometimes exceeding 2,000%. This pattern has been observed in past bull markets, notably in 2017 and 2020, where Bitcoin experienced massive surges. The latest golden cross was confirmed in late May, and since then, Bitcoin has shown upward movement, although the gains have been relatively modest at 12% so far. Trader Merlijn highlighted this development on X, emphasizing the potential for Bitcoin to reach $155,000 in the coming months.
Bitcoin's price action is currently consolidating below $120,000, but market sentiment remains positive, with expectations of further price discovery. Analysts suggest that a daily close above the $120,000 resistance level, followed by a retest, could confirm a breakout to new highs. The next target for Bitcoin is projected to be around $135,000, as the cryptocurrency continues to move independently of broader macroeconomic concerns. This bullish outlook is supported by the first-ever weekly golden cross event at the start of 2024, which coincided with the beginning of the current bull market's upward trajectory. As Bitcoin consolidates, some capital is being redirected into altcoins, according to analyst Rekt Capital. Despite the optimism, it is important to note that investment in cryptocurrencies carries risks, and individuals should conduct thorough research before making any trading decisions.
