Bitcoin (BTC) Forms Golden Cross: A Bullish Signal for the Crypto Market
Bitcoin Forms Golden Cross: Is a Bull Run Imminent?
Bitcoin, the largest cryptocurrency by market capitalization, has just formed a golden cross. This chart pattern occurs when a shorter-term moving average crosses over a longer-term moving average, indicating a rising bullish trend. The last golden cross was spotted in early February.
The formation of a golden cross suggests that short-term price momentum is outpacing long-term price momentum, potentially leading to a bull run. In just two weeks, Bitcoin surged 30%, reaching levels above $35,000 for the first time since May 2022.
One driving factor behind this rise is the anticipation that the U.S. Securities and Exchange Commission will allow exchange-traded funds to invest directly in Bitcoin. This news propelled the market value of Bitcoin to a high of $35,157 on October 27, its highest level in approximately 18 months.
Although there was some profit-taking in the previous week, Bitcoin rebounded over the weekend and seems to be on track for its third consecutive day of gains. At the time of writing, Bitcoin was up 0.59% in the last 24 hours, trading at $34,640.
Despite reaching yearly highs, Bitcoin is not as overheated as previous bull markets, according to the Bitcoin market value to realized value (MVRV) ratio provided by IntoTheBlock. This ratio indicates that there is still room for the bull market to continue, with historical peaks exceeding 300% MVRV.
Additionally, CryptoQuant analysis shows increased interest in Bitcoin among indirect investors. The Fund Holding index, which measures the total quantity of coins held by digital asset-holding entities such as trusts, recently reached its highest level in two months. This surge in holdings was in response to news of probable Bitcoin ETF approval in the United States.
As Bitcoin continues to make headlines and attract attention from both retail and institutional investors, it will be interesting to see how the market evolves in the coming weeks. Will the golden cross be the catalyst for a sustained bull run? Only time will tell.
About the Author:
Tomiwabold Olajide is a cryptocurrency analyst and experienced technical analyst. He closely follows cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.