Bitcoin is currently revisiting the “golden cross,” a positive technical indicator that has often been a precursor to significant price increases, as noted by crypto market expert Mister Crypto.
In a recent post on X, the analyst highlighted that Bitcoin’s (BTC) past golden crosses resulted in substantial gains of 2,200% in 2017 and 1,190% in 2020. With BTC now trading close to $110,000, he indicated that maintaining this level could trigger another substantial upward movement.
“The current setup appears exceptionally robust,” he commented. He further mentioned that if Bitcoin breaks out convincingly, its price could “absolutely skyrocket” in the upcoming weeks.
A golden cross occurs when a short-term moving average—typically the 50-day—crosses above a long-term moving average like the 200-day. This pattern suggests a shift from bearish to bullish momentum and indicates potential price increases.
Bitcoin revisits golden cross. Source: Mister Crypto
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Analyst warns Bitcoin must maintain $110K or risk ending cycle
Crypto analyst Mac cautioned that for Bitcoin to avoid signaling an end to its current cycle, it must hold above $110,000. In his post on X, he pointed out that the four-hour Money Flow Index (MFI) is “deeply oversold,” indicating BTC might be poised for an imminent rebound.
Mac also stated that while the risk-to-reward ratio seems promising at present levels, he does not foresee an immediate large-scale rally but rather expects some moderate upward movement next week.
The necessity for Bitcoin to sustain $110K level. Source: Mac
Simultaneously, Fundstrat co-founder Tom Lee remarked on how recent stock market declines might have been anticipated given markets have climbed by 36% since April and Friday’s drop was their largest in six months.
He emphasized an increase of 1.29% in VIX—a volatility index—which represents one of its most significant spikes ever recorded at rank number fifty-one as investors sought refuge amidst uncertainty.
This surge typically signals nearing short-term bottoms due mainly because traders prefer hedging over selling outrightly during such periods according To Lee who expressed optimism about future prospects saying “If someone asks whether we’ll see higher prices within next week? I’d say chances are quite favorable.”
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