Crypto analysts and investors are growing increasingly giddy about an impending golden cross on Bitcoin’s 3-day price chart.
Is a Trend Reversal on the Cards?
Since topping out at $13,800 Bitcoin has taken a prolonged beating as buying pressure evaporated and bears took control of the wheel. Bearish analysts have predicted that Bitcoin could drop as low as $4,000 before reversing course.
Meanwhile, Bitcoin bulls expect the digital asset to bounce off the 21-day exponential moving average (EMA) at $8,000 to $8,500, then the uptrend could resume.
The golden cross has long been viewed as a long-term indicator of a bull market and the impending cross of the 50-MA and 200-MA (moving average) would be a first since February 2016.
Back then, the golden cross occurred six months prior to Bitcoin halving event and analysts are now wondering whether Bitcoin price will follow a similar trajectory to a new all-time high.
Down, but not out
At the moment, Bitcoin is down approximately 33 percent from its 2019 high but hodlers and long-term investors are not dismayed. It is common knowledge that long-term moving averages and the MACD are indicators that lag behind BTC’s spot price action so the recent crossover could merely be representative of Bitcoin’s moon-like move from $3,200 to $13,800.
With that said, this should not detract from the significance of the golden cross as the one from February 2016 saw Bitcoin rally all the way to $20,000. At the time of writing, BTC trades for $9,650 and analysts seem to agree that the digital asset could make a run at $10,000 over the next 24-hours. At the same time, a close above $11,200 would be needed to restore the bullish uptrend.
As of now, the short-term consensus on Bitcoin price action is relatively bearish and most traders await the much-discussed bounce of the 21-EMA. Recently, crypto-analyst Alessio Rastani advised traders to check their confirmation bias and consider a variety of bullish and bearish outcomes for Bitcoin.
Meanwhile, Pantera Capital founder Dan Morehand predicted that BTC could reach $42,000 by the end of 2019. Morehead also believes Bitcoin could top $365,000 over the next 2 years. During an interview on the Unchained podcast, Morehead elaborated on each prediction by saying:
Graph the price of Bitcoin logarithmically…its trend is going to grow at 235% compound annual growth rate and…that put Bitcoin at $42,000 at the end of 2019. And I know this sounds crazy but we’re essentially halfway back there. I think it’s a good shot that by the end of the year we hit that. And if you just extrapolate that line out for another year it’s $122,000 per Bitcoin and then one more year, $356,000.
Do you think the golden cross is a sign that Bitcoin price is on the path to a new all-time high? Share your thoughts in the comments below!
Image via Shutterstock, Twitter: @JWilliamsFstmed, YouTube: AlessioRastani