Bitcoin is nearing a “Golden Cross” formation, as its 50-day SMA is poised to surpass its 200-day SMA. A notable analyst projects a likely rally to $100K to follow.
Bitcoin’s price faces downward pressure as the weekend approaches, falling to $65,000 on Wednesday. Despite this decline, Bitcoin bounced back quickly, recovering more than $2,000 to reach above $67,679. The rebound comes amid potential signs of bullish momentum, as technical indicators suggest a possible “Golden Cross” formation.
Cross May Trigger $100K Rally
A “Golden Cross” typically forms when the 50-day Simple Moving Average (SMA) crosses over the 200-day SMA. This event often signals a shift toward bullish momentum in financial markets.
An analyst named Elja has observed that Bitcoin appears to be approaching such a crossover. Historical trends show that past “Golden Cross” formations have led to substantial gains in Bitcoin’s price.
For instance, a similar crossover occurred in September 2023, pushing Bitcoin out of its $28,000 consolidation phase and driving it to the $50,000 level before the year ended. Based on this pattern, the current technical setup raises the possibility of a further price surge, potentially targeting the $100,000 mark in the coming weeks.
BTC Golden Cross Approaching 👀
$100,000 is coming sooner than you think? #Bitcoin pic.twitter.com/U3ochaHAW2
— Elja (@Eljaboom) October 24, 2024
Factors Boosting Bitcoin’s Potential
Notably, the U.S. presidential elections draw near, and analysts suggest that crypto assets could experience heightened interest and volatility. Michaël van de Poppe, a noted cryptocurrency analyst, recently commented on Bitcoin’s price action, noting that its dip to $65,000 was temporary and that the minor correction may be nearing its end.
The upcoming elections, along with potential shifts in macroeconomic policy, could influence investor behavior toward Bitcoin and other cryptos. Declining bond yields, another factor in the broader financial landscape, could also support demand for digital assets as investors seek alternative assets.
Bitcoin to Test New Highs By November
In a separate post, Van de Poppe forecasts that Bitcoin could revisit its all-time high within the next two to four weeks, coinciding with the release of key economic indicators like the Purchasing Managers’ Index (PMI).
The PMI is widely used to gauge economic health, and stronger-than-expected data could act as a catalyst for Bitcoin’s price recovery.
Currently, Bitcoin remains near $67,000, setting the stage for another attempt to breach the $73,000 level, where it previously peaked in March. Van de Poppe projects that this attempt could occur by mid or late November, fueled by improving macroeconomic sentiment.
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.
