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Bitcoin (BTC), the largest cryptocurrency by market capitalization, may be on pace to create a new golden cross on its weekly chart.
According to TradingView data, the weekly SMA 50 was $28,102 and is rising at press time, while the weekly SMA was $29,301.
Since mid-October, Bitcoin has risen for seven weeks in a row, surpassing the $42,000 level. If this week concludes positively, Bitcoin will have gained for the eighth week in a row.
Crypto-specific factors have contributed to Bitcoin's stellar 152% rise in 2023, with BTC reaching new yearly highs of $42,410 in Monday's trading session.
A golden cross, which is produced when the SMA 50 crosses above the SMA 200, implies that short-term price momentum is outpacing long-term price momentum, perhaps resulting in a bull run. Based on this indicator, Bitcoin's weekly golden cross may emerge in the coming weeks.
Citing prior precedents, in the weeks following the September 2021 golden cross, Bitcoin rose to a new high of $69,000. The forthcoming golden cross may live up to its storied past, given the optimism over the likely launch of a U.S.-based spot ETF.
What's next for Bitcoin price?
Bitcoin was holding near $42,000 at press time after scaling this key level on Monday, trading up 0.15% to $41,866.
Meanwhile, the euphoria surrounding Bitcoin crossing $42,000 continues trending across crypto platforms, according to Santiment.
However, some technical indicators, such as the RSI, a momentum gauge, might suggest Bitcoin’s rally has become stretched.
According to Santiment, Bitcoin's RSI suggests a brief cooldown for the BTC price after surpassing $42,000. If this happens and the RSI stays at 65, Bitcoin might aim for $50,000 more quickly.
Ali, a crypto analyst, notes that the most important resistance area for BTC is at $47,360, while $37,000 has now become a significant support zone.