Bitcoin is once again close to the golden cross. This is a technical figure that is highly anticipated by analysts and generally heralds an uptrend.
According to several analysts, the golden cross, or the cross between bitcoin’s 50-day and 200-day moving averages will occur in a few days. What is unusual is that this golden cross follows shortly after the death cross that took place on 29 June.
According to Rekt Capital, the golden cross on bitcoin is only two days away from occurring again.
The new #BTC Golden Cross is only 3 days away$BTC #Crypto #Bitcoin pic.twitter.com/JbbHzIzQ6r
— Rekt Capital (@rektcapital) August 10, 2021
According to the analyst, the formation of this technical figure invalidates the previous death cross. This should have taken bitcoin to $29,000, but we have seen that BTC only briefly ended up below $30,000 (in the third week of July) and then began a climb again which currently takes it to $46,000.
What does the golden cross on bitcoin indicate
In any case, according to Rekt Capital we are once again in a macro accumulation phase:
“The last time we saw a death cross happen and then a golden cross happened 60 days later we had that occur in 2019 and in 2019 we saw a period of macro accumulation, so the same logic extended to this scenario having a death cross happen and now a golden cross happened that would essentially give us additional insight that this is actually a period of macro reaccumulation at these highs because we’re seeing consolidation. We saw consolidation from 29 to 39k for a long time for multiple weeks, a multi-month consolidation period and now we’ve broken out from there and we might be seeing a sign of macro reaccumulation happening here. So a golden cross happening here would be a good sign not necessarily that we’d see further upside because we didn’t see much downside from the death cross”.
In short, the golden cross is a bullish signal, but it doesn’t mean that an upward price explosion will take place, just as the death cross did not lead to a downward price explosion.
What Rekt Capital is pointing out is that as long as the technical picture remains as it is, investors could be bullish in the long term.
Certainly, bitcoin is proving resilient to political and economic scenarios. Indeed, BTC has not seemed particularly affected by the approval of the Infrastructure Bill in the US, which should have put the crypto sector in a difficult position. On the contrary, while the US Senate was debating, BTC touched $46,000.
The CTO of Tether and Bitfinex, Paolo Ardoino, is also optimistic:
“A return to bullish sentiment may be sweeping across cryptocurrency markets today in spite of headwinds, including yesterday’s hack. Bitcoin, the king of crypto, is unstoppable technology. That may be unpalatable to some critics watching on the sidelines. Nevertheless, they should do well to remember that this is a battle-worn technology built in the most adversarial conditions imaginable of the open public Internet”.
According to this view, there is no technical analysis that matters, no law that can stand in the way of BTC. Bitcoin is simply unstoppable.
