Bitcoin has a chance to reach $155,000 in the coming months as classic bullish signals return. As trader Merlijn noted last Thursday, BTC/USD has seen a "Golden Cross" on the daily chart.
Bitcoin Golden Cross Is the Best News for Bulls
The Bitcoin Golden Cross, formed when the 50-day simple moving average (SMA) crosses above the 200-day equivalent, often leads to significant price increases.
Their success varies widely. Sometimes the 50-day SMA does not stay above the 200-day SMA for long. Regardless of how long it lasts, the golden cross clearly impacts BTC price volatility.
"Every. Time. This signal indicates that $BTC is moving vertically," Merlijn said alongside a chart showing historical crosses.
These price increases include strong market rallies, with both 2017 and 2020 witnessing increases exceeding 2,000% thanks to prolonged golden cross signals.
The most recent golden cross occurred in October 2024, when BTC/USD was trading around $65,000. In the following three months, this pair reached a new all-time high of nearly $110,000.
"The same setup. The same signal," Merlijn said about the newly confirmed crossover signal on May 22.
So far, Bitcoin's maximum increase has only reached a total of 12%, a rather modest figure. Even replicating the short-term crossover of 2016, the target compared to the confirmed crossover price remains $155,000.
Bitcoin witnessed its first weekly golden cross event in early 2024, coinciding with the start of the current bullish market's vertical uptrend.
BTC Breaks Around $120,000
While Bitcoin's price stabilizes below $120,000, market participants have ample reason to expect prices to continue rising.
The target increasingly leans towards $135,000 as the next stop for BTC/USD as this pair overlooks macro concerns and develops autonomously.
Trader and analyst Rekt Capital shared with X followers on Friday that: "Daily closing price above ~120,000 dollars. The next major resistance is the retest after the breakout that will help Bitcoin confirm the breakout to new highs."
Rekt Capital also notes that consolidation is redirecting capital into alternative cryptocurrencies.
