Bitcoin is revisiting the “golden cross,” a bullish technical formation that has historically signaled rallies, according to crypto market expert Mister Crypto.
In a Sunday update on X, the analyst presented a chart highlighting that Bitcoin’s (BTC) prior golden crosses resulted in gains of 2,200% in 2017 and 1,190% in 2020. With BTC currently around $110,000, he indicated that maintaining this level could trigger another significant rally.
“The setup appears remarkably strong,” he remarked, suggesting that a confirmed breakout could lead to a dramatic increase in Bitcoin’s price in the near future.
A golden cross is a bullish trading indication that occurs when a short-term moving average, typically the 50-day, surpasses a long-term moving average, often the 200-day. This pattern indicates that momentum is shifting from bearish to bullish, suggesting potential price increases.
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Bitcoin must sustain $110K or cycle might conclude: Analyst
Crypto analyst Mac also cautioned that Bitcoin needs to hold the $110,000 mark to avoid indicating the conclusion of the current cycle. In a post on X, he mentioned that the 4-hour Money Flow Index (MFI) is “deeply oversold,” implying that BTC might be due for a short-term rebound.
Mac noted that the risk-to-reward scenario looks promising, although he doesn’t foresee a significant jump in the immediate future. Instead, he expects “some upward fluctuations next week.”
Meanwhile, Fundstrat’s co-founder Tom Lee suggested that the recent stock market decline “may be overdue to some extent,” observing that markets have risen 36% since April and that last Friday’s drop was the largest in six months.
He pointed out the significant increase in the VIX, a volatility index, which rose by 1.29%, describing it as “the 51st largest ever spike in the VIX,” implying that investors are looking for safety.
Lee argued that such a volatility spike often indicates a short-term market bottom, as traders generally rush to hedge instead of selling. “If someone asks, ‘Will we be higher a week from now?’ I would say the odds are quite favorable,” he stated.
Related: How high can Bitcoin’s price rise in October?
Trump announces 100% tariffs on Chinese imports
The recent market downturn was triggered by US President Donald Trump’s announcement of 100% tariffs on all Chinese imports effective Nov. 1, in response to China’s new export restrictions on rare earth minerals.
China, which provides about 70% of the global rare earth supply, has recently implemented regulations that require an export license for any product containing more than 0.1% rare earth minerals sourced from China, starting Dec. 1.
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