Crossing the threshold of $ 6,700, will Bitcoin price really turn around?

Over the past few days, it is possible that the cryptocurrency community on Twitter has been excited about the “golden cross” pattern that has formed on Bitcoin's daily chart.

Golden cross or golden cross is the most bullish technical analysis indicator, it appears when the 50-day moving average crosss up with the 200-day moving average of an asset, which shows that A definitive uptrend is forming.

So it's no wonder that this model came out earlier in the week, cryptocurrency investors announced that the next parabolic rally would bring BTC to $ 100,000 and possibly even further.

However, this was quickly overshadowed when today, February 20, the Bitcoin price plummeted from above $ 10,000 to $ 9,250 on some exchanges, recording a 10% loss. Within hours, this move left hundreds of millions of dollars in leveraged positions.

While this flash cash incident certainly scared traders, Bitcoin's strong correction could actually be a stepping stone to a broader uptrend.

Bitcoin could be on a strong rise, despite falling just 10%.

As mentioned above, Bitcoin has dropped by nearly 10% from its peak on February 20. Of course, this is a shock for investors, but the “golden cross” formed a day or two before is a sign for many investors that the days of BTC dropping hundreds of dollars in a day have passed. .

The problem is, this week's king coin has shown a similar trend with the last time a gold cross appeared.

As Cryptoslate's contributor, Nick Chong, wrote in the tweet below, in the 48 hours after Bitcoin's golden cross appeared in April 2019, the price of the asset plummeted to $ 641 – marking the level of decreased by 11.41%, before starting a higher uptrend in a few weeks after the correction.

“Fun fact: Bitcoin dropped 11% in the two days after the last gold cross in April 2019 came out, then started rising by nearly 170% to $ 14,000.”

Nick Chong is not the only one who discovered this particular trend of Bitcoin.

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Alex Krüger, a macroeconomist and crypto market commentator, noted in tweet recently that Bitcoin printed a “death crossover” model (as opposed to a gold cut) before China's 42% pump, which brought BTC to surpass $ 10,000 for the first time in weeks. It was followed by a 50% retreat from the price of over 9,000 USD to 6,400 USD in the following months.

These two cases show that Bitcoin, after the end of the correction in the next day or two, will form a new uptrend that surpasses the previous peak at $ 10,550, the ability to start a market. long-term growth.

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According to CryptoSlate
Translated by ToiYeuBitcoin

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