Bitcoin is currently retesting the “golden cross,” a bullish technical formation known for leading to price rallies, according to crypto market analyst Mister Crypto.
In a Sunday post on X, the analyst shared a chart indicating that past golden crosses for Bitcoin (BTC) resulted in gains of 2,200% in 2017 and 1,190% in 2020. With BTC trading around $110,000, he posited that maintaining this level could spark another significant upward movement.
“The setup looks incredibly strong,” he noted, adding that a confirmed breakout might “absolutely explode” Bitcoin’s price in the next few weeks.
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 signifies a shift in momentum from bearish to bullish, suggesting potential price increases.
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Bitcoin must hold $110K or cycle could end: Analyst
Crypto analyst Mac also warned that Bitcoin needs to maintain the $110,000 threshold to prevent indicating the end of the current cycle. He remarked on X that the 4-hour Money Flow Index (MFI) is “deeply oversold,” hinting at a potential short-term recovery for BTC.
Mac further stated that the risk-to-reward scenario appears favorable, although he does not foresee a major increase in the immediate future. He expects “a little more upward chop next week.”
Meanwhile, Fundstrat’s co-founder Tom Lee believes the recent market pullback might have been somewhat overdue, noting a 36% rise in markets since April and that Friday’s drop marked the largest in six months.
He pointed out the significant increase in the VIX, a measure of market volatility, which surged by 1.29%, calling it “the 51st largest ever spike in the VIX,” suggesting that investors were looking for safety.
Lee contended that such spikes in volatility usually indicate a short-term market bottom, as traders move to hedge instead of sell. “If someone asks me, ‘Are we higher a week from now?’ I’d say the odds look quite good,” he remarked.
Related: How high can Bitcoin price go in October?
Trump announces 100% tariffs on Chinese imports
The recent market sell-off followed US President Donald Trump’s declaration that the US will implement 100% tariffs on all Chinese imports starting Nov. 1, as a response to Beijing’s new export restrictions on rare earth minerals.
China, which supplies approximately 70% of the world’s rare earths, recently instituted rules that require an export license for any product containing more than 0.1% Chinese-sourced rare earths, effective Dec. 1.
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