Michael Saylor, a well-known Bitcoin advocate, has commented on the significance of the Golden Cross for a potential price increase of the asset.
Golden Cross: What is it?
In technical analysis, a Golden Cross occurs when the 50-day moving average crosses above the 200-day moving average, indicating a potential start of a long-term uptrend.
Historical Parallels
In previous years, Golden Crosses have preceded significant price increases. In 2016, Bitcoin rose by 139%, followed by a 2,200% rally in 2017. Another surge of 1,190% occurred in 2020.
Factors Supporting the Rally
Increasing institutional adoption and the upcoming miner reward reduction (halving) set the stage for further price growth. Saylor emphasizes that macroeconomic factors and Bitcoin’s limited supply are in its favor.
The Golden Cross, combined with macroeconomic factors, might signal a new Bitcoin price surge. However, as seen in the past, market emotions such as fear of missing out could play a role alongside the price increase.
