A Bitcoin Golden Cross Forms as Bullish Momentum Continues
In the wake of its latest rally, Bitcoin (BTC) appears to be forming a golden cross – a bullish formation usually considered a buy signal by traders. This formation appears when a short-term moving average, such as the 50-day moving average, crosses above a long-term moving average. Right now, the 50-DMA on Bitcoin’s chart is above both 100-day and 200-day DMAs.
Bitcoin Surges 30% in Two Weeks
After sitting below the $30,000 mark for over two months, Bitcoin witnessed a major rally over the past week, driving the world’s biggest cryptocurrency to nearly $34,700 – a level not witnessed since May 2022.
BTC stood at $34,690 at the time of writing on Monday, gaining almost 30% since mid-October, when the cryptocurrency was trading below $27,000.
Amidst the latest rally, Bitcoin’s 50-DMA crossed above the 100- and 200-DMAs, signaling the formation of a chart pattern known as the “golden cross.” This crossover suggests a potential shift in trend from a bearish phase to a bullish phase, often interpreted as a buy signal by traders and investors.
These moving averages, located in the price range between $28,048 and $28,364, form a strong confluence support zone for BTC. On the upside, the crypto asset faces a resistance level at around $36,400, a threshold not breached in the past year and a half.
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Bitcoin Thriving on Renewed Spot BTC ETF Hopes
The impressive Bitcoin upswing comes mainly from a fresh round of optimism among crypto investors that US regulators will soon greenlight the long-awaited spot Bitcoin exchange-traded fund (ETF).
In June, BlackRock, the world’s largest asset manager, applied to the SEC to launch the first-ever Bitcoin spot ETF in the United States. This move brought joy to the crypto community, as it kindled hopes of widespread institutional adoption of Bitcoin and other cryptocurrencies. BlackRock’s move was followed by several other traditional Wall Street giants, including Fidelity Investments, Valkyrie Investments, and Cathie Wood’s ARK Invest.
That Bitcoin is very reactionary to spot ETF developments was underscored by the false breakout earlier this month caused by reports that the SEC approved BlackRock’s application. The false alarm propelled BTC from around $27,000 to nearly $30,000 in several hours.
Where do you see Bitcoin trading at the start of 2024 if regulators approve the spot BTC ETF before the end of this year? Let us know in the comments below.