Bitcoin has been slowly gaining ground over the past day, but the cryptocurrency still finds itself stuck in a narrow trading range. However, a rare technical pattern might be the key to the next big price surge.
On September 2, a crypto analyst known as ‘Titan of Crypto’ alerted his 90,000 followers on X (formerly Twitter) to an unusual pattern forming on Bitcoin’s chart. This pattern, known as a golden cross, involves the 100-day moving average (MA) converging with the 200-day moving average.
The Golden Cross: A Well-Known Bullish Signal
In technical analysis, a golden cross happens when a shorter-term moving average, like the 50-day MA, crosses above a longer-term moving average, such as the 200-day MA. This crossover is often seen as a sign of a long-term bullish trend and a potential indicator of significant price increases.
A Golden Cross with a Twist?
What makes this situation particularly intriguing is that the 100-day MA has stayed above the 200-day MA since 2014, with the exception of a brief death cross (the opposite of a golden cross) in late 2023. After this death cross, Bitcoin prices soared by an impressive 170%, underscoring the potential impact of these technical indicators.
Now, the 100-day MA is on the verge of crossing back above the 200-day MA, a rare event that ‘Titan of Crypto’ suggests could lead to “the most explosive bull run yet.”
Analysts Offer Mixed Views
Despite the golden cross indicating a possible bullish trend, not all analysts share the same optimism about Bitcoin’s short-term future. On September 3, another analyst, ‘CrediBULL Crypto,’ suggested that Bitcoin might experience another drop to the $56,000 level before any significant rally occurs. This aligns with the common belief that September often brings challenging price action for Bitcoin.
Similarly, analyst ‘Rekt Capital’ observed that Bitcoin was making the right moves to avoid turning its channel bottom into new resistance. However, he stressed the need for a weekly close above $58,300 to confirm a more robust bullish trend.
Recently, Bitcoin has seen a modest 3% rise over the past 24 hours, reaching a high of $59,800 during the Tuesday morning trading session in Asia. The next resistance level is around $61,000. However, Bitcoin has already started to pull back slightly, trading at $59,300 at the time of writing.
The broader cryptocurrency market has seen a similar increase, with the total market capitalization rising by 2% to $2.17 trillion. Several altcoins, including Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), and Uniswap (UNI), have outpaced Bitcoin in gains during the same period.
What Lies Ahead for Bitcoin?
This unique golden cross could be a crucial moment for Bitcoin, potentially signaling the beginning of a major bull run. However, opinions remain divided, with some analysts expecting further declines before a sustained rally. The next few days and weeks will be critical in determining Bitcoin’s price direction.
For now, traders and investors will be watching closely, as the outcome of this golden cross could shape Bitcoin’s path for the remainder of the year.
