As a seasoned analyst with over two decades of market analysis under my belt, I find myself intrigued by the current state of Bitcoin (BTC). The potential for a golden cross trend is palpable, and if it materializes, it would be a significant milestone this year.
Analysts are seeing signs that Bitcoin (BTC) might soon experience a significant golden cross event, which typically signals a positive trend. This happens when the 50-day moving average surpasses the 200-day moving average. Historically, this event has been associated with bullish momentum, similar to the period of growth in late 2023 during the initial bull run phase.
If the golden cross trend predicted holds true, it will be the first instance this year when this event occurs. Market analyst and founder of Crown Analysis, Tom Crown, emphasized this recent development regarding X. He provided a chart that showed Bitcoin’s daily price movement alongside its 50-day moving average (yellow line) and 200-day moving average (green line).
#Bitcoin Golden Cross INCOMINGWatch for a local top in price on the day of cross
— Tom Crown (@TomCrownCrypto) August 26, 2024
Bitcoin Exhibit Resilience After Price Dip
Without a doubt, it’s evident that Bitcoin has experienced a resurgence following its dip below $50,000 during the initial week of August.
Over the past few weeks, I’ve been closely monitoring the performance of our leading digital currency. Notably, for a substantial portion of this month, Bitcoin’s price has persistently hovered under both its 50-day and 200-day moving averages. However, that trend shifted dramatically over the weekend.
During this period, Bitcoin’s value significantly increased by around 6.13%, surpassing both its average values. As I write this, CoinMarketCap data indicates that Bitcoin is being traded at $63,571.58. Over the past day, it has experienced a minor dip of 0.25%. Despite this small decrease, Bitcoin continues to trade above its 50-day moving average ($61,927) and its 200-day moving average ($63,418). This suggests a robust bullish trend is in play.
Specialists have pointed out that the 50-day Moving Average tends to increase more quickly than the 200-day Moving Average, contributing to a sense of anticipation for an upcoming convergence, often referred to as a “golden cross.” Moreover, Bitcoin’s immediate price trend is significant in this context. The possibility of a golden cross occurring relies on Bitcoin’s near-term momentum gathering pace, which would further boost the 50-day Moving Average.
In this situation, it’s important to maintain the current positive trend, as a lapse could lead to a reversal and a negative shift instead.
Bitcoin ETF Inflows to Push Price Up
It’s important to point out that a surge in investments into Bitcoin ETFs, such as BlackRock’s IBIT and Fidelity’s FBTC, could potentially spark growth in the price of Bitcoin. According to data from SoSoValue, trading volumes for these eleven ETFs reached $3.12 billion, which is their highest level since July 19, while their net inflows totaled approximately $252 million.
In a typical pattern, IBIT dominated the group in trading and accumulated inflows worth $1.2 billion and $83 million. Fidelity’s FBTC came second to BlackRock, bringing in $64 million, while Bitwise’s BITB secured $42 million, allowing it to surpass the $2 billion Assets Under Management (AUM) threshold for the first time. In contrast, Grayscale’s GBTC was the sole product experiencing net outflows totaling $35 million.
The growing acceptance of these products by institutional investors is a significant factor shaping this perspective.
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2024-08-26 14:27