The Bullish Golden Cross Pattern is Formed: Would It Be A $10,000 Breakthrough?
The graph of technical analysis of market behavior Bitcoin indicates the formation of a pattern called the “Golden Cross”. This technical pattern appears when a fast 50-day moving average crosses a slow 200-day moving average.
Traders were very enthusiastic about this indicator, because, in the case of the implementation of the “Golden Cross” model, the bulls will break into the market and provide a record high price movement up. A vivid example of such a breakthrough is 2019 when after fixing the “Golden Cross”, the price of Bitcoin increased by more than 150%.
The first signs of the “Golden Cross” technical pattern were recorded back in February 2020. But then the bulls could not resist. The reason for this was the massive sale of Bitcoin in March in a situation when the panic and uncertainty that triggered the pandemic spread throughout the financial market.
The formation of the “Golden Cross” in May may indicate that Bitcoin is returning to the bulls that prevailed on the cryptocurrency market even before Black Thursday. If this time the bullish indicator demonstrates its strength, we can witness a jump in the price of Bitcoin up.
Bitcoin interest rises
According to the latest data, the Chicago Mercantile Exchange (CME) record-breaking volume of open positions in Bitcoin futures. This indicates that traders hold the flagship cryptocurrency in their hands because they want to play for a raise. The increase in Open Interest on the stock exchange once again confirms the forecasts of cryptanalysts about the prevalence of bulls and the upcoming breakthrough of the Bitcoin price.
Also, the growth of open positions indicates the interest of institutional investors in cryptocurrency. In particular, Gabor Gurbach, a strategist at VanEck, noted that Bitcoin now acts as a safe asset for spot transactions. According to him, the flagship cryptocurrency is an excellent solution for speculative operations.
Leading investor, dollar billionaire Paul Tudor Jones, said he sees Bitcoin as a defense against possible inflation. He said that bitcoin futures hold 1-2% of equity.
Why did investors suddenly change their focus on risky assets? This is directly related to the decision of the Fed to reduce interest rates on loans to a minimum. Thus, now bonds do not bring investors profit and they are forced to look for new ways to increase their capital.
This is victory?
The advent of the “Golden Cross” technical pattern has sparked optimistic sentiment within the crypto community. But it’s too early to draw final conclusions. After all, the price of Bitcoin has been fluctuating for more than a week around the level of $10,000.