Bitcoin (BTC) is approaching a very critical area on its chart, just as a bullish indicator is about to flash green. If things go well for the leading crypto, we could see a return to the all-time-highs near $20,000 without much difficulty.
Either tomorrow or the next day, the classic “Golden Cross” indicator will cross over, signalling a likely bullish future.
Typically made up of the 50 and 200 simple moving averages (SMAs) on a daily chart, this golden cross – while not always bullish – will happen just as Bitcoin tries to break out of a strong resistance zone at around $10,000.
The red zone above comprises a force of downtrending resistance that began all the way back in late 2017/early 2018, when Bitcoin set its all-time-high. If the golden cross is enough to entice buyers into buying, there is an enormous upside potential, shown below.
As we can see, there is very little resistance between the current price and the previous highs, with most price history being below roughly $12k. Breaking this level in the next few days (“Option 1”) could lead to a rapid return to $20k.
On the other hand, we could see a breakdown (“Option 2”) and continued sideways action through 2020.
One thing’s for sure: we will know soon if this Golden Cross will be one to remember.
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