According to the latest technical analysis, the price of Bitcoin (BTC) is likely to continue the strong momentum in the coming weeks, when the two moving averages on the daily chart are about to form a “gold cross” signal.
A “gold cross” occurs when a short-term moving average (MA) intersects a long-term moving average from the bottom up, which is usually the 50-day and 200-day MA. This signal represents the number 1 cryptocurrency in the world preparing for a new upward impetus.
The last time the gold crossover signal appeared in April 2019, helping the price of BTC from $ 4,995 increased 175% to a peak of $ 13,880.
Therefore, if history repeats itself, Bitcoin is facing the opportunity to set up new value milestones in this year.
Daily graph of Bitcoin price
The convergence of the two important MA lines (circled) is a sign that the purchasing power for BTC is still despite the currency has grown to 43.5 since January 1 this year.
However, BTC after establishing a gold cross still needs volatility to consolidate the value later to avoid the risk of breaking the current trend.
Supporting the current bearish scenario is the 14-day relative strength (RSI), which is fluctuating at 67.2 – very close to the overbought area above 70.
Besides, yesterday's red candle created conditions for the downtrend in the market to threaten to push Bitcoin back to $ 10,000, and could make BTC a third time within a week to breach this important psychological threshold – a It is certain that investors will have to question the robustness of the current price trend.
Weekly graph of Bitcoin price
In general, the trend on the weekly chart is still positive, following the break of the downward price channel, which lasted nearly 7 months on January 20.
Another noteworthy point is that the price is stable on the 50-day moving average (yellow line), creating a solid premise when Bitcoin is less than 3 months away until the halving day – the event expected by the market. will also push the world's No. 1 cryptocurrency to soar.
However, the medium-term upside prospect of the price will be in danger if BTC drops below $ 9,706 – the bottom of the 11/02 correction, greatly affecting the ability to set up a gold cross in particular and take part in Expect a new peak of 2020 in general for Bitcoin.
- The two short-term and long-term moving averages of Bitcoin are about to come together with a “gold cross,” the first bullish signal appearing in the past 10 months.
- The 14-day RSI is getting closer to the overbought area, indicating that the market is likely to be corrected in the coming days.
- The momentum of growth on the weekly chart is still very strong, following the break of the downward channel that lasted 203 days in January.
- The trend of growth can only be threatened if BTC falls below $ 9,706, the bottom of the first correction of the week.
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According to Coin68 / CoinDesk