However, few critical Bitcoin price levels must be fragmented before the bullish party can begin. Bitcoin (BTC) and the cryptocurrency market had a smarten up this week as the fraud news near Litecoin (LTC) caused a spike in volatility. However, the structure of the market is rigid. In fact, Bitcoin’s price might be bottoming out as a golden cross is beginning to form.
Will Bitcoin break out due to the golden cross?
The regular chart for BTC/USD reflects some key things. The first and most dominant is the potential golden cross about to take place. In the summer, the first and foremost thing is to focus on the death cross, as the sentiment turned on to ultra negative, and various traders predicted more downside as a result.
The market shows the uptrend but with the cross of moving averages (MAs) being very much a lagging indicator. But the occurrence of the cross doesn’t mean that the market will continue in that direction.
Currently, a golden cross is a bullish signal, especially when Bitcoin’s price is ready to smash out above the MAs. If this takes place and Bitcoin’s price goes above these MAs, these levels can then distribute as brand new support for a much bigger rally.
A week ago, the market saw a weighty rectification as Bitcoin’s price broken down from $52,000 to $42,000. However, the price of Bitcoin touchdown on attracting support level, resulting in a long wick. Such a long wick implies acquiring pressure and a new support level.