Bitcoin's charts indicate a golden cross, traditionally seen as a bullish signal. The cryptocurrency has reached $110,000 and is approaching significant resistance at $113,000.
Golden Cross and Technical Analysis
The 50-day moving average has crossed above the 200-day, marking a historically bullish signal confirming a golden cross for Bitcoin. This occurred as Bitcoin exceeded $110,000 and approached a resistance level near $113,000, in line with a prediction made by analyst Benjamin Cowen. Technical indicators and significant short liquidations have contributed to the recent breakout.
Correction and Potential Volatility
A violent short squeeze over the past day caused over $239 million in short positions to be wiped out, allowing Bitcoin to surpass previous local highs. Despite the impressive price action, Bitcoin may now face volatility.
Market Prospects and Expectations
Golden crosses are not always reliable, but historically they have sparked additional upside. A retest of support at $101,000 is possible as sentiment leans towards an optimistic $200,000 target.
Bitcoin is showing significant activity and is approaching critical resistance levels. Current market sentiment is highly bullish, and further movements will depend on asset behavior near $113,000.
