Bitcoin (BTC) is currently experiencing what some experts describe as the early stages of a bull market. This assessment is based on a significant chart pattern that is unfolding for the first time in Bitcoin’s history. Alistair Milne, an entrepreneur, recently highlighted the occurrence of Bitcoin’s first weekly “golden cross” on social media platform X. The potential implications of this chart pattern are generating excitement among Bitcoin investors and analysts.
Bitcoin has already delivered substantial gains for investors in recent weeks, with year-to-date profits reaching an impressive 165%. However, the significance of this achievement goes beyond mere profitability. If Bitcoin’s current performance continues, it will result in a crossover of two crucial weekly moving averages (MAs) – the 50-week MA and the 200-week MA. This golden cross phenomenon has never been observed before and is considered a classic bullish signal.
Bitcoin traders and analysts closely monitor the 50-week and 200-week MAs as key trendlines. The 200-week MA, in particular, serves as a critical level of support during bear markets. Remarkably, it has never seen a decrease in value since Bitcoin’s inception. Earlier this year, Bitcoin made headlines when its spot price fell below the 200-week MA in an unprecedented move. However, the current upward momentum has brought Bitcoin back above this level, paving the way for a potential golden cross.
If the golden cross materializes, Bitcoin’s price is anticipated to experience significant growth. The chart pattern suggests that the 50-week MA will surpass the 200-week MA, setting the stage for a sustained bull market. Alistair Milne believes that this occurrence signals the start of an early bull market for Bitcoin. He emphasizes the historical significance of this event, stating that the previous bear market was the “worst” because Bitcoin remained below the 200-week MA for the first time. This upcoming golden cross has the potential to reverse that trend and propel Bitcoin to new heights.
While the golden cross has many Bitcoin enthusiasts optimistic, not everyone shares the same sentiment. Some market commentators caution against excessive bullishness due to potential drawbacks. Crypto Chase, a popular trader, expressed skepticism regarding Bitcoin’s recent price surge and revealed a short position on BTC. He believes that the market could experience a significant downturn, potentially even revisiting the low $20,000 range.
Trader Il Capo of Crypto takes a more contrarian view, maintaining a bearish perspective on Bitcoin’s price. He predicts that Bitcoin’s true bottom target is $12,000 and anticipates a substantial sell-off to $30,000-$31,000, with altcoins experiencing a 30-40% decline. These predictions, if realized, could mark the beginning of a capitulation event, according to Il Capo.
The emergence of Bitcoin’s first-ever golden cross is a momentous event in the cryptocurrency world. The potential for a sustained bull market has captured the attention of investors and analysts alike. While some remain cautious and anticipate a market correction, others are optimistic about Bitcoin’s future. The weeks ahead will reveal whether this chart pattern proves to be a turning point for Bitcoin’s price trajectory.
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