Bitcoin is currently revisiting the “golden cross,” a bullish technical pattern that has historically acted as a precursor to price surges, according to crypto market analyst Mister Crypto.
In a Sunday post on X, the analyst shared a chart indicating that Bitcoin’s (BTC) prior golden crosses resulted in increases of 2,200% in 2017 and 1,190% in 2020. With BTC presently around $110,000, he suggested that maintaining this level could trigger another steep price increase.
“The setup appears remarkably strong,” he stated, adding that a confirmed breakout could “absolutely explode” Bitcoin’s value in the weeks ahead.
A golden cross is a bullish trading indicator that occurs when a short-term moving average, typically the 50-day, crosses above a long-term moving average, often the 200-day. This signals a shift in momentum from bearish to bullish, implying that prices may begin to rise.
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Bitcoin must maintain $110K to avoid cycle end: Analyst
Crypto analyst Mac also warned that Bitcoin needs to sustain the $110,000 mark to prevent signaling the conclusion of the current cycle. In a post on X, he pointed out that the 4-hour Money Flow Index (MFI) is “deeply oversold,” indicating that BTC might be ready for a short-term bounce.
Mac noted that although the risk-to-reward setup seems favorable, he doesn’t anticipate a significant surge in the near term. Rather, he expects “a little more upward chop next week.”
Meanwhile, Fundstrat’s co-founder Tom Lee believes the recent slump in the stock market “may be overdue to an extent,” pointing out that markets have surged 36% since April and that Friday’s decline was the largest in six months.
He emphasized the notable uptick in the VIX, a gauge of market volatility, which rose by 1.29%, calling it “the 51st largest ever spike in the VIX,” suggesting investors were seeking safety.
Lee argued that the volatility increase typically signals a short-term market bottom, as traders flock to hedge rather than sell. “If someone asks, ‘Are we higher a week from today?’ I’d say the odds are quite favorable,” he remarked.
Related: What is the potential price for Bitcoin in October?
Trump announces 100% tariffs on Chinese imports
The recent market downturn followed US President Donald Trump’s announcement of 100% tariffs on all Chinese imports beginning Nov. 1, as retaliation for Beijing’s new export restrictions on rare earth minerals.
China, which supplies approximately 70% of the world’s rare earths, recently implemented regulations mandating an export license for any product containing over 0.1% Chinese-sourced rare earths, expected to take effect Dec. 1.
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