bitcoin It created the first golden cross since September 2021. VentureFounder, a crypto trader doing analysis on Cryptoquant, excitedly tweeted about this situation. According to the analyst, a possible correction in the bearish scenario could allow BTC to retest $20,000, while on the other hand, if it is bullish, Bitcoin could test $25,000 in the next stage. Once the $25,000 barrier turns into support, “this will be the nail in the coffin for the bears.”
#Bitcoin goldencross just happened!NEWS CONTINUES BELOW
This potential correction could see #BTC retest $20k (#200DMA and key support), then in the bullish case, test $25k next.
Make $25k support and it’s nail in the coffin for the bears. pic.twitter.com/baPFOTECCGNEWS CONTINUES BELOW
— venturefoundΞr (@venturefounder) February 6, 2023
When the moving average (MA) 50 moves above the MA 200, a positive cross or “golden cross” appears on the price chart. Eight gold crossovers have occurred in Bitcoin history, three of which predicted price increases in February 2012, October 2015, and May 2020 – between 100% and 350%. On the other hand, after gold crosses in July 2014, July 2015 and February 2020, which were bull traps, the leader cryptocurrency unit fell. Since moving averages are lagging indicators, most of the gains are likely to have occurred before the crossover. However, traders and chart analysts see the gold crossover as a sign of long-term price increases.
It looks like it will make another crossover on the Bitcoin weekly chart in a day or two. The cross this time seems to be a death cross, which is the opposite of the golden cross and signals a bearish change in the long-term trend. On the other hand, the Federal Reserve’s increasingly aggressive stance could mean positivity for the leading cryptocurrency.
As we reported as Koinfinans.com, at the time of writing this news, the price of Bitcoin rose slightly to $ 22,964 with a slight increase compared to the previous day.
Today, Fed speakers, including Chairman Jerome Powell, will make statements. As the corporate earnings season continues and the trade balance report for December is released today, investors will keep their eyes on the data front.