The price of the flagship cryptocurrency Bitcoin ($BTC) could soon surge to the $25,000 mark and put a “nail in the coffin” of $BTC bears and short sellers, as the cryptocurrency’s 50-day moving average rises above its 200-day moving average.
According to Investopedia, there are three stages to a golden cross, with the first one requiring a downtrend to eventually bottom out as selling is depleted. The second stage comes after the shorter moving average “forms a crossover up through the larger moving average to trigger a breakout and confirmation of trend reversal. “ A third stage occurs with the continuation of an uptrend.
Bitcoin’s price charts last formed a golden cross in September 2021 on their daily timeframes, roughly two months before the flagship cryptocurrency’s price moved to a new all-time high near the $69,000 mark, as first noted by Cointelegraph.
Venturefounder, a contributor to on-chain data platform CryptoQuant, noted that the golden cross could see $BTC rise over $25,000 and help that level become a support level that sees demand outstrip supply – which could further help Bitcoin’s price rise in the future.
As CryptoGlobe reported, popular and highly respected on-chain Bitcoin analyst Willy Woo has recently revealed the recent $BTC price rally “coincides with a new pattern emerging of stablecoins flowing into exchanges during work days only. Seems to me like the heat signature of large institutions doing the buying.“
Notably, ARK Invest has recently revealed in a report that the price of Bitcoin could top $1.4 million per coin in the future, based on their bullish case, as the cryptocurrency’s “long-term opportunity is strengthening.”
Per the firm, Bitcoin is now “likely to scale into a multi-trillion dollar market.” ARK Invest bases its predictions on $BTC’s penetration rate in several use cases, including as corporate treasury, a remittance asset, nation-state treasury, an emerging market currency, an economic settlement network, a seizure-resistant asset, an institutional investment, and digital gold. In its most bullish case, ARK Invest sees Bitcoin’s price hit $1.48 million by 2030.
Bitcoin is, at the time of writing, trading at around $23,000 per coin after having its best January since 2013, in which it rallied well over 40%, significantly outperforming the stock market and gold.
On social media, however, various analysts pointed out that the golden cross may not mean the price of $BTC is set to move up in the near future, as on weekly timeframes $BTC’s 50-period moving average dropped below its 200-period moving average, in what is known as a death cross. A death cross indicates price weakness.
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