Bitcoin is revisiting the “golden cross,” a bullish technical formation that has historically signaled rallies, as pointed out by crypto market analyst Mister Crypto.
In a Sunday post on X, the analyst shared a chart showing 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 suggested that maintaining this level could trigger another parabolic movement.
“The setup appears extremely strong,” he noted, adding that a confirmed breakout could lead to a significant surge in Bitcoin’s price in the upcoming weeks.
A golden cross signals bullish momentum when a short-term moving average, typically the 50-day, surpasses a long-term moving average, often the 200-day. This indicates a shift from bearish to bullish momentum, suggesting prices may begin to rise.
Related: Luxembourg sovereign wealth fund invests in Bitcoin ETFs with a 1% stake
Bitcoin must sustain $110K to avoid cycle termination: Analyst
Crypto analyst Mac also cautioned that Bitcoin needs to remain above the $110,000 mark to prevent indicating the end of the current cycle. In a post on X, he observed that the 4-hour Money Flow Index (MFI) is “deeply oversold,” indicating that BTC might experience a short-term bounce.
Mac pointed out that the risk-to-reward scenario appears favorable, although he doesn’t foresee a major surge in the short term. Instead, he expects “a bit more upward fluctuation next week.”
Meanwhile, Fundstrat’s co-founder Tom Lee asserted that the recent stock market decline “may be overdue to some extent,” noting that markets have surged 36% since April and that Friday’s drop represented the most significant in six months.
He emphasized the notable increase in the VIX, a gauge of market volatility, which rose by 1.29%, describing it as “the 51st largest ever spike in the VIX,” suggesting that investors are seeking safety.
Lee contended that this volatility spike often indicates a short-term market bottom, as traders rush to hedge instead of sell. “If someone asks, ‘Will we be higher a week from today?’ I’d say the odds are quite favorable,” he remarked.
Related: How high could Bitcoin’s price soar in October?
Trump announces 100% tariffs on Chinese imports
The most recent market downturn followed US President Donald Trump’s announcement that the US will enforce 100% tariffs on all Chinese imports starting Nov. 1, as retaliation for Beijing’s new restrictions on rare earth mineral exports.
China, which provides approximately 70% of the global rare earth supply, has recently instituted regulations requiring an export license for any product containing over 0.1% Chinese-sourced rare earths, set to take effect Dec. 1.
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