Bitcoin (BTC) seems to be setting the stage for an “early bull market”, as it prepares for a unique chart feature that has never been seen before. A noteworthy shift in Bitcoin’s trajectory has been observed, with the cryptocurrency transitioning from a death cross to a golden cross in just 10 months.
Bitcoin’s Remarkable Gains
The recent surge in BTC’s price has been profitable for various Bitcoin investor groups. However, the 165% year-to-date gains now hold significance for a different reason. If the current performance persists, Bitcoin will experience a crossover of two weekly moving averages (MAs) that have never before signaled such a bullish trend. These MAs, the 50-week and 200-week, are critical trendlines for Bitcoin traders and analysts.
The 200-week MA, the ultimate bear market support level, has never decreased in value. It was in the limelight earlier this year when the spot price dropped below it, a move without precedent. Now that it’s back above, BTC’s price strength is set to push the 50-week MA trendline above the 200-week counterpart.
The ‘Golden Cross’ Phenomenon
This event, known as a “golden cross”, is deemed a classic bullish signal on lower timeframes. Some believe that this could lead to significant upside if the phenomenon plays out. This bear market was the ‘worst’ as it was the first time in Bitcoin’s history that we spent time below the 200-week moving average price. The 50-week moving average will soon cross back above the 200-week MA, creating a ‘golden cross’ for the first time. This suggests the onset of an early bull market.
Data from Cointelegraph Markets Pro and TradingView suggest that BTC/USD could even achieve the Bitcoin weekly golden cross before the end of 2023.
Enduring Bearish BTC Price Predictions
Despite Bitcoin’s swift rise to $44,000 this week, not all market commentators are optimistic. Some believe that buyer momentum is exhausted and that powerful large-volume sellers could still significantly lower the market. Among them is popular trader Crypto Chase, who revealed a short BTC position as Bitcoin crossed $43,000. He warned that what comes next could involve a trip to the low $20,000 range.
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Please note that this article does not provide investment advice or recommendations. Investing and trading involve risk, and readers should conduct their own research before making a decision.
