Bitcoin continues to consolidate below the $120,000 mark after an impressive rally to all-time highs. Market analysts are pointing to a signal that may indicate potential growth for the asset in the upcoming months.
Golden Cross Appearance
A golden cross occurs when the 50-day simple moving average crosses the 200-day average. Crypto trader Merlijn noted that a golden cross has just been recorded, increasing the chances of a parabolic rise in BTC prices. Historically, such crosses have often preceded significant price increases: 139% in 2016, 2200% in 2017, and 1190% in 2020. Merlijn stated:
> "Now it’s flashing again in 2025. Same setup. Same signal. Miss this and you’ll remember it forever. Bitcoin is about to leave orbit."
Bitcoin Fundamentals
However, golden crosses do not always lead to significant price jumps. In September 2021, the signal was present, but BTC only increased by 50%. Similarly, the crossover in October 2023 triggered a 45% rise. Short-lived crosses often result in minimal price spikes, while longer ones can create parabolic movements. Market analyst Rekt Capital stresses the need for a daily close above $120,000 to reach new highs. Currently, Bitcoin is consolidating and facilitating inflows into altcoins.
Prospects and Analysis
Despite recent sell-offs, analysts believe that the fundamentals of Bitcoin remain positive. With decreasing supply and increasing demand, the likelihood of bears taking control in the coming weeks seems low. However, it is essential to consider broader technical and macroeconomic factors when analyzing a golden cross. The 62% price drop in February 2020 after a golden cross highlights risks associated with unfavorable macroeconomic conditions.
The golden cross forming in Bitcoin may serve as a precursor to future price jumps, but it's crucial to consider other factors. Analysts continue to monitor the situation with hopes for positive developments.
