$BTC

🛑The possibility of Bitcoin's decline despite the golden cross indicator

While many expect Bitcoin to reach $140,000, things may not go as anticipated. Historical analyses and market data indicate a slight possibility of a decline for Bitcoin.

The "golden cross," a technical indicator that occurs when the 50-day moving average crosses above the 200-day moving average, is typically considered a bullish signal. However, historical data suggests that Bitcoin often experiences a 10% decline following a golden cross before rising to new levels.

For instance, in February 2021, Bitcoin fell by 10% within seven days after the 50-day moving average crossed above the 200-day moving average. Similarly, in March 2024, Bitcoin dropped by 11% before climbing to a new all-time high.

This pattern suggests that the golden cross may act as a reordering strategy by major players to eliminate weak hands, paving the way for a genuine price breakout. This breakout often leads to a wave of buying, driven by fear of missing out (FOMO), pushing the price higher.

Recently, Bitcoin experienced an 8% decline, in line with previous trends, followed by a recovery, indicating strong buying interest around the $104,000 to $105,000 range. However, it seems that upward momentum above $110,000 has subsided.