Bitcoin (BTC) is currently experiencing what many analysts consider to be the beginning of an early bull market. This assessment is based on a unique chart feature that is playing out for the first time in the history of Bitcoin. The recent surge in BTC price has resulted in significant profits for various Bitcoin investor cohorts, with year-to-date gains reaching an impressive 165%. However, it is not just the price uptrend that is catching attention; it is also the potential crossover of two key moving averages (MAs), known as the “golden cross.”
Entrepreneur Alistair Milne recently highlighted Bitcoin’s first-ever weekly golden cross in a post on social media. The 50-week and 200-week MAs are crucial trendlines for Bitcoin traders and analysts, with the latter serving as the ultimate bear market support level. The 200-week MA gained significant attention earlier this year when the spot price fell below it in an unprecedented move. Now that the BTC price has recovered and is trading above the 200-week MA, it is on track to surpass the 50-week MA, creating the golden cross pattern.
A golden cross is generally regarded as a classic bullish signal, indicating strong upward momentum. Milne believes that if this phenomenon continues to play out, Bitcoin could experience a substantial upside. The fact that Bitcoin spent time under the 200-week moving average for the first time in its history during the recent bear market makes the potential golden cross even more significant. The impending crossover of the 50-week and 200-week MAs signals the start of an early bull market, according to Milne’s analysis.
Analysts using data from Cointelegraph Markets Pro and TradingView suggest that BTC/USD could achieve the weekly golden cross before the end of 2023. However, not everyone shares the same bullish sentiment. Some market commentators believe that Bitcoin’s buyer momentum is exhausted, and there are still powerful large-volume sellers capable of driving the market considerably lower. Crypto Chase, a popular trader, expressed bearishness when Bitcoin crossed the $43,000 mark and revealed a short BTC position. He anticipates a potential decline all the way to the low $20,000 range.
Crypto Chase is not the only one with a bearish outlook. Il Capo of Crypto, a controversial trader, maintains that Bitcoin’s true bottom target is as low as $12,000. In a post to his Telegram channel subscribers, he predicted a “big dump to $30k-31k” with altcoins experiencing a significant decrease of about 30-40%. According to him, this event would mark the beginning of capitulation.
Bitcoin’s first-ever weekly golden cross is attracting significant attention in the crypto community. If the crossover between the 50-week and 200-week MAs occurs as anticipated, it could serve as a strong bullish signal for Bitcoin’s future trajectory. While some remain skeptical, pointing to potential price declines and even lower support levels, others are optimistic about the emergence of an early bull market. As always, the future of Bitcoin remains uncertain, but the golden cross has certainly piqued the interest of traders and analysts alike.