Bitcoin, Golden Cross Appears...Is it eyeing $85,000?

▲ Bitcoin (BTC)/ChatGPT Generated Image

Bitcoin (BTC) has completed a golden cross on the chart, emitting a decisive signal indicating entry into a long-term bull market.

According to crypto-focused media NewsBTC on April 8 (local time), a golden cross phenomenon occurred where Bitcoin's 50-day moving average crossed above its 200-day moving average. Historically, the golden cross is considered one of the most reliable indicators, appearing when a downtrend ends and a major rally begins. Market analysts predict that this indicator change will be a decisive driving force to push Bitcoin's price to new highs.

Currently, Bitcoin is trading around the $71,500 mark, establishing a strong support base. The occurrence of a golden cross acts as a trigger, attracting long-term buying interest from institutional investors, beyond a simple price rebound. Analyzing previous cases, Bitcoin's returns tended to increase by an average of over 25% within 60 days after a golden cross formation. Experts diagnosed that if a similar pattern repeats this time, there is a high probability that the price will break through $85,000.

Technical analyst Peter Brandt commented, "The emergence of a golden cross signifies that the market's dominant trend has completely shifted from bearish to bullish." Brandt particularly noted that this golden cross coincides with continuous capital inflows into Bitcoin spot ETFs. Unlike in the past, real institutional demand is backing it, leading to an analysis that it is likely a true trend reversal rather than a false breakout.

The overall investor sentiment index in the virtual asset market is also improving, raising expectations for further gains. The Relative Strength Index (RSI) is trending upwards above the neutral zone, and the Moving Average Convergence Divergence (MACD) index is also sending bullish signals. Large investors, or 'whales,' have recently accumulated an additional 15,000 BTC or more, exacerbating the market's supply shortage.

Bitcoin has laid the groundwork for a trend reversal beyond a mere technical rebound, spurred by the formation of the golden cross. Market participants are noting that the major moving averages have formed a 'regular array' (bullish alignment) and are reviewing their asset management strategies. As capital inflows from large investors continue, a solid foundation supporting the price floor is being formed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*