Key Insights
- Bitcoin market approaching a Golden Cross
- A few Range bound highs to the yearly high
- RSI signalling neutral Bitcoin market.
Today’s CryptoGurru daily Bitcoin analysis looks at several bullish technical indicators appearing on the BTC/USD market. We are going to discuss the upcoming golden cross, a death cross that occurred in February 2023 and alternating upper bound ranges that are early signs of an upcoming bullish market.
A golden cross occurs when the short-term moving average (50-period) crosses above the long-term moving average (200-period) to create a bullish/buy signal. The death cross is the opposite of the golden cross. This takes place when the long-term moving average crosses above the short-term moving average.
The Golden cross
In February, the BTC/USD market marked a death cross on the weekly chart following Bitcoin’s sharp fall of -77% from its all-time high. See below:
We analyzed this trend back then and found out it resulted from the crypto market’s meltdown following the crash of FTX. In November 2022, Bitcoin hit rock bottom immediately after the collapse and touched $15,500. Sometimes, the death cross is translated as the end of a market bottom. The floor. Therefore, most crypto analysts believed the February death cross was the worst-case scenario for the market.
Juxtaposed is the recent golden cross that’s forming on the weekly BTC/USD chart. A gold cross shows the best is yet to come in a price pattern. Let’s study the chart below:
Let’s look at another rather bullish technical pattern to support the above case. Range highs and the yearly high.
Alternating range highs are signalling an upcoming yearly high
There is a pattern that has already occurred twice before prior bull runs on Bitcoin’s historic performance. Look at the chart below and then we will explain what’s happening in the paragraphs that follow:
Historic price performance has shown that the BTC/USD trading pair explodes upwards from an extreme market bottom. In this case, $15K.
Once the surge begins, the uptrend stops at a range high and then pauses for days, weeks or even months.
During this time, the bulls continue accumulating more coins as they speculate an imminent bull run.
Thereby pushing the price upwards and into another range high. This pattern continues on and on until the price hits a new yearly high. As you can see on the chart above, it’s possible that BTC/USD is already retracing this pattern.
Daily technical analysis
Bitcoin’s 20-day Exponential Moving Average (EMA) currently stands at $30,384, which coincides with the current price of Bitcoin. This suggests that the cryptocurrency has been moving along its short-term trend line, indicating stability in its recent price movements.
Analyzing the major indicators, we observe that there are 13 indicators signalling a buy, 10 indicators in a neutral position, and 2 indicators indicating a sell. This distribution suggests a slightly bullish sentiment in the market, with a majority of indicators favoring a buy position.
Looking at the moving averages, we find that 12 of them are signalling a buy, while only one indicates a neutral position, and another suggests a sell. The dominance of buy signals in this case reinforces the bullish sentiment and indicates a positive trend for Bitcoin.
Considering the oscillators, we note that one oscillator is indicating a buy, while nine are in a neutral position, and one is signalling a sell. This mixed distribution implies a relatively balanced state between buyers and sellers, with the overall sentiment leaning towards neutrality.
The Relative Strength Index (RSI) touched 52.62, which suggests that Bitcoin is currently neither overbought nor oversold. This level indicates a moderate momentum in the market, without any extreme bullish or bearish indications.
Examining the Moving Average Convergence Divergence (MACD), we observe that the yellow line is touching the blue line at -59. This crossing indicates a potential trend reversal or a change in momentum, as the two lines converge. Traders and investors may want to closely monitor this development to identify possible buying or selling opportunities.
Mubashir Ahmed is a multifaceted market analyst with extensive knowledge of the blockchain industry. He is proficient in market analysis and blockchain technology, having had experience with numerous projects in the space. He has a deep understanding of the Cryptocurrency industry, its trends, and how to best approach investing in it.
