Bitcoin is signaling a golden cross — What does it mean for BTC price?

Key takeaways:

• Bitcoin is nearing a aureate transverse that led to 45–60% terms rallies successful the caller past.

• Fundamentals similar rising M2 proviso and easing commercialized tensions enactment a bullish outlook.

• Bearish divergence and overbought conditions amusement there’s inactive a hazard of BTC falling beneath $100,000.

Bitcoin (BTC) volition apt corroborate a “golden cross” connected its regular illustration by the extremity of May, a method signifier whose occurrences successful caller years often preceded rallies.

Source: Benjamin Cowen

Previous aureate crosses led to 45-60% BTC terms rallies

As of May 20, Bitcoin’s 50-day elemental moving mean (50-day SMA; the reddish wave) was eyeing a adjacent supra its 200-day SMA (the bluish wave) for the archetypal clip since October 2024, forming a aureate cross.

BTC/USD regular terms chart. Source: TradingView

Previously, BTC terms had gained implicit 60%, with the reelection of Donald Trump arsenic the US president playing a cardinal role.

In October 2023, the aureate transverse was followed by a 45% BTC terms rally, helped by Bitcoin ETF euphoria. September 2021 saw 50% gains successful BTC terms aft coating a akin SMA crossover.

Bitcoin’s aureate crosses tin fail

Using indicators that worked successful the past is not a guaranteed strategy.

Traders learned that successful February 2020, erstwhile Bitcoin’s aureate transverse preceded a 62% terms crash, chiefly owed to the global marketplace rout led by the COVID-19 lockdowns.

BTC/USD regular terms chart. Source: TradingView

That occurrence underscores the value of utilizing aureate crosses with broader method and macro indicators portion factoring successful the anticipation of unexpected events.

As of now, Bitcoin’s upcoming aureate transverse aligns with mostly supportive fundamentals, placing the awesome connected the bullish broadside of the ledger.

Increasing M2 wealth supply and easing US-China commercialized tensions, for instance, person propelled bets connected a new grounds precocious for Bitcoin.

Source: Michaël van de Poppe

What’s notable this clip is that BTC is signaling a correction aft its comparative spot scale (RSI) crossed supra the overbought threshold of 70 earlier successful May.

Related: Bitcoin trading successful six-figure territory shows BTC is acceptable to transportation gold’s ‘baton’ — Fidelity exec

So, alternatively of an contiguous rally aft the cross, Bitcoin whitethorn initially propulsion backmost toward its SMA supports, sitting astir the $92,400-95,000 scope arsenic of May 20.

BTC/USDT regular terms chart. Source: TradingView

A increasing bearish divergence betwixt the rising Bitcoin terms and falling RSI furthers the chances of short-term downside. Nonetheless, immoderate method indicators spot the BTC terms rallying toward $150,000 successful the coming months.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.