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Bitcoin appears to be just 24 to 48 hours away from triggering a golden cross, one of the most potent technical signals in trading. Bitcoin has been consolidating following its dramatic breakout above $90,000. It is currently trading at about $94,900. Price action is flattening just below important resistance levels, but the momentum has not diminished entirely.
Despite Bitcoin breaking well above the 100 EMA, which is unusual this far into a rally, the 100 EMA is still above the 50 EMA at $88,837, which is just a little above the current price. The crucial part is that the 50-day EMA (currently around $88,395) is nearly in line with the 100-day EMA. Since Bitcoin is continuing to hold steady at high levels, the cross is almost certain to occur in the next two to three trading sessions.
An official golden cross, a traditional medium-to-long-term bullish confirmation occurs when the 50 EMA crosses above the 100 EMA. This is a significant issue from the perspective of market psychology. Both swing traders and institutions keep a close eye on golden crosses, which often leads to a resurgence of momentum as confidence rises. Bitcoin has space to rise without becoming overextended as long as volume remains steady and the RSI remains close to 67.
Nonetheless some hesitancy is indicated by consolidation below the 100 EMA. The price must remain above $90,000 in order to maintain the golden cross scenario. This setup would be under pressure from a deeper retrace toward $88,000, which could weaken or delay the signal. Looking ahead, the psychological milestone of $100,000 and $98,000 are the next resistance levels if the golden cross is completed and Bitcoin stays strong above $95,000.
A push to six figures is not out of the question in the upcoming weeks if buyers intervene after the cross. In conclusion, a significant technical confirmation for Bitcoin is just a few inches away. Should the golden cross materialize as anticipated, this market may be preparing for a new leg higher.
Vladislav Sopov
Dan Burgin