Bitcoin’s price chart is showing a bullish pattern that closely mirrors a setup from late 2024, which previously led to a surge from $70,000 to over $100,000 amid rising concerns about the U.S. debt. Experts suggest that Bitcoin might be on the verge of confirming a “golden cross” in the coming days, according to charting platform TradingView. This pattern occurs when the 50-day simple moving average (SMA) crosses above the 200-day SMA, signaling a potential shift into a strong bull run as short-term momentum outpaces the broader trend.
While the moving average-based golden cross has had mixed success in predicting market moves, its upcoming formation is noteworthy, especially since it follows a recent “death cross” that kept many investors cautious earlier this year. Interestingly, a similar pattern in August and September 2024 preceded Bitcoin breaking above $70,000 in early November, eventually reaching a record high above $109K in January.
Looking back at 2024, Bitcoin bottomed near $50,000 in early August when the 50-day SMA dipped below the 200-day SMA, forming a death cross that initially appeared bearish. However, that bearish signal turned out to be a false alarm, trapping bears and setting the stage for a rally. After the golden cross appeared in late October 2024, prices began a new upward trajectory, culminating in a significant rally.
This repeating pattern since April suggests that Bitcoin is poised for another upward move once the golden cross confirms in the coming days. Of course, past performance doesn’t guarantee future results, and technical signals are just one part of the picture. However, macroeconomic factors are aligning with this bullish technical outlook.
Recently, Moody’s downgraded the U.S. credit rating from “Aaa” to “Aa1,” citing concerns over the mounting national debt now exceeding $36 trillion. This downgrade reflects ongoing fiscal worries, which have been influencing bond yields and overall market sentiment. Elevated Treasury yields indicate investor apprehension about U.S. fiscal stability, a scenario that tends to be bullish for Bitcoin as a hedge against traditional financial risks.
In summary, Bitcoin’s technical setup suggests a potential breakout, supported by macroeconomic headwinds that favor the cryptocurrency as a store of value amid economic uncertainty. Investors should stay attentive to the confirmed golden cross and macro developments that could drive the next significant move in Bitcoin’s price.
