Bitcoin (BTC) has failed to break through a key resistance level amid prolonged consolidation across the general market, keeping its value below $30,000. However, Bitcoin technical analysis suggests that the asset could head for further all-time highs based on past price movements.
In particular, a pseudonymous cryptocurrency trading analyst trading shot,and director TradingView on Aug. 4 observed that the virgin cryptocurrency had just completed its third ever golden cross pattern, a bullish price signal in the long term.
According to our analysis, the last two instances of this pattern have led to significant price increases for Bitcoin. Once the cross occurred, the 200-day moving average (3D MA 200) calculated on the 3-day timeframe provided key support levels and helped sustain the uptrend.
But it’s worth noting that the exceptional circumstances of the March 2020 coronavirus crash caused a temporary disruption to the pattern typical of his Black Swan equivalent.
As with previous cycles, analysts stress that the next likely target for Bitcoin’s rally will be the previous all-time high of $69,000 as the 3D MA50 guides price action. bottom.
Furthermore, he attributed the relatively early completion of the 2019 Golden Cross to the “Libra euphoria” and other positive fundamentals that contributed to Bitcoin’s increased adoption. Conversely, 2020 took a little longer to reach all-time highs, taking about 100 days longer than the previous cycle.
“It may be a reasonable estimate that Bitcoin will reach its current ATH ($69,000) by this time next year,” he said.
After Bitcoin’s Golden Cross, What’s Next?
A golden cross pattern occurs when the short-term moving average crosses above the long-term moving average. For Bitcoin’s recent golden cross, the price is trading above the 3D MA50 and 3D MA200, indicating a positive trend change for the digital asset.
In general, Bitcoin’s price has been volatile lately, and the impact of the Golden Cross is seen as an optimistic sign in the asset’s price trajectory. In particular, there is consensus regarding the likelihood of Bitcoin rising to new highs.
Finbold reports that a significant number of Bitcoin holders (69.2%) have no intention of selling their assets, preferring to “hold” them. At the same time, the amount of Bitcoin sent to exchanges has also decreased in recent weeks.
The next Bitcoin halving, scheduled for 2024, is expected to trigger the start of a new market cycle. In the short term, Bitcoin faces a threat of falling further below the $29,000 level. Machine learning algorithms predict that the asset will likely trade at $28,000 at the end of August, according to Finbold’s report.
Bitcoin price analysis
At the time of this writing, Bitcoin is trading at $29,014, up less than 0.1% over the past 24 hours.
Elsewhere, technical analysis taken from TradingView suggests the indicator is bearish. The 1-day gauge overview suggests a sell signal and a rate of 10, similar to the moving average of 9, and the oscillator is neutral at 9.
Meanwhile, with volatility rampant, the market will be watching to see how Bitcoin reacts in the short term.
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