Bitcoin’s Golden Cross Indicates Potential Price Revival Ahead
Bitcoin (BTC) has rebounded above $105,000 after a dip caused by geopolitical tensions. The formation of a "Golden Cross," where the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA, indicates potential for significant price increases.
Key Points
- Previous "Golden Cross" formations resulted in BTC gains of 49%, 125%, and 68%.
- Potential price targets range from $152,000 to $229,000 based on historical patterns.
- Recent price fluctuations show an 8% dip followed by a 5.8% dip, suggesting weakening resistance that may allow for a breakout above $110,000.
- Analyst Raoul Pal advises investors to focus on global M2 supply, noting it explains 89% of BTC's price action, implying news and narratives are largely irrelevant.
- Traders have predominantly taken long positions on BTC after recent dips, while Ethereum traders are shifting to short positions based on immediate price movements.
- Exchange funding rates are volatile and often lead to liquidation events; optimal entry points typically arise during bearish market sentiment.