Bitcoin (BTC) recently formed a bullish golden cross on the weekly timeframe as it slips into the final stage of the ongoing market correction.
Bitcoin’s current downtrend has persisted since the collapse from the $48,969 high on Jan. 11. The premier cryptocurrency is now down 18% from the monthly peak, as it struggles to retain the $40,000 threshold after recently reclaiming it.
BTC slumped to a low of $38,555 two days back, marking its lowest price this year. The last time the asset saw this price level was on Dec. 1, 2023. However, following the recent descent to $38,555, BTC immediately embarked on a recovery.
Bitcoin Forms Golden Cross
The token eventually reclaimed $40,000 and is now keen on holding above this level. Amid the resilience, Crypto Rover, a well-known market analyst, identified a golden cross on the weekly timeframe, signaling an imminent bullish momentum.
For the uninitiated, a golden cross occurs when the value of a short-term moving average exceeds the value of a long-term moving average, causing the shorter moving average to cross above the longer one. It typically reflects a shift in short-term momentum aligning with a positive long-term trend.
Data from the analyst’s chart fails to capture the length of the moving averages in question. However, it indicates that the short-term moving average (in green) continued to trade below the long-term moving average (in red) since for 12 months before the switch.
The recent golden cross occurs after a year, signaling its rarity. While Crypto Rover does not explicitly forecast any imminent price action, his choice to point out the golden cross suggests a looming price upswing, given the typical implications of this price pattern.
BTC Slipping into Final Phase of Correction
In a separate analysis, veteran market trader Michaël van de Poppe called attention to an equally bullish trend for Bitcoin on the 3-day chart. According to the analyst, Bitcoin is slipping into the final phase of the ongoing market correction.
Michaël van de Poppe pointed out that the firstborn crypto asset has recorded a 20% retracement over the past 10 days. As a result, he emphasized that the market would start witnessing a drop in volatility from this current position.
However, this does not invalidate the likelihood of further drops. Van de Poppe stressed that BTC could still witness a dip to the range low between $36,000 and $39,000, represented with a green bar. Nonetheless, a drop to retest the range low would usher in an uptrend.
The analyst says this uptrend would persist into the upcoming Bitcoin halving in April. He has set up a range high value between $48,000 and $50,000. Bitcoin currently trades for $40,276, down 6.13% in the past week. With a weekly RSI of 63, Bitcoin still retains its strength despite a weakening of the upward momentum.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
