In the ever-volatile world of cryptocurrency, Bitcoin (BTC), the reigning king, is preparing to make a significant move. A long-anticipated event, known as a ‘golden cross,’ is on the horizon, highlighting an upswing in bullish sentiment as a Bitcoin surge of approximately 30.0% appeared in just two weeks. Here’s a closer look at this promising development.
The Golden Cross Approach
Bitcoin’s golden cross pattern is significant for cryptocurrency enthusiasts. It occurs when the 50-day simple moving average (SMA) surpasses the 200-day SMA on an upward trajectory, symbolizing that short-term price momentum is outperforming the long-term trend.
As of the latest data, the 50-day SMA stands at $27,714, steadily rising, while the 200-day SMA hovers at $28,174. Bitcoin to Dollar’s recent rally has seen it climb above $35,000, a level not witnessed since May 2022.
A golden cross is a pivotal moment in the crypto world, often signalling the start of a bull run. However, it’s crucial to remember that such patterns are retrospective and don’t guarantee future performance. In the past, Bitcoin has encountered nine golden crossovers, but three of them quickly turned into ‘death crosses,’ leading to notable downtrends.
From Bitcoin Revival to The Golden Cross
Past golden crosses have had their share of excitement. The first two golden crosses, as well as one in May 2020, resulted in triple-digit percentage returns for long-term holders. Following the Golden Cross in September 2021, Bitcoin reached a record high of $69,000. However, the excitement was short-lived, and the gains were largely wiped out within three months.
So, what makes this upcoming Golden Cross unique? Several factors contribute to the optimism, including the possibility of a US-based spot ETF launch, prevailing macroeconomic uncertainties, Bitcoin’s growing reputation as a haven asset, and the upcoming mining reward halving.
Mining halving events are seen as bullish for Bitcoin profit since they reduce the selling pressure from miners and slow the dilution of Bitcoin’s supply.
Bitcoin Bull Run: Closing Thoughts
While Bitcoin’s golden cross is on the horizon, traders and investors should approach it with caution. Historical patterns offer insights, but they don’t predict the future. The cryptocurrency market remains inherently unpredictable, with many external factors at play.
As Bitcoin’s value inches closer to the Terra recovery level, investors watch with bated breath, hoping that the world’s leading cryptocurrency has truly turned a corner. Bitcoin often acts as a barometer for the broader crypto industry. If Bitcoin shines, other digital assets tend to follow suit.
Currently, Bitcoin is trading at $34,122 and showing an 18.4% rise over seven days. Therefore, it’s tantalizingly close to breaking past its pre-Terra level of $37,000. The crypto community is abuzz with excitement, anticipating the approval of a spot Bitcoin ETF, which could provide a significant Bitcoin surge and the entire cryptocurrency ecosystem.
Investors are cautiously optimistic about Bitcoin’s future, and as the cryptocurrency world continues to evolve, the community eagerly anticipates what’s in store for the digital asset markets.
