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Bitcoin (BTC) has gained significant momentum over the past few months with the initiation of an upward movement. According to a tweet shared by senior analyst Barchart, the leading cryptocurrency by market value has formed what is known as a “Golden Cross” on its weekly chart for the first time.
Critical Formation in Bitcoin
A Golden Cross is a bullish formation observed when a token’s short-term moving average crosses above its long-term moving average. In Bitcoin’s weekly chart, this event occurred when the 50-week moving average (MA) crossed above the 200-week MA. The mentioned model is traditionally viewed as a positive sign and could indicate the possibility of a sustainable upward trend.
However, it is important to remember that the Golden Cross can sometimes act as a lagging indicator. By the time this formation occurs, the market may have already accounted for the upward trend. This means the model could be confirming an existing trend rather than predicting a new one. Despite the historical formation, the price of Bitcoin stumbled today, dropping $1,000, or 2.3%, in just 7 hours.
Report from an Analytics Firm
On-chain data analysis firm Lookonchain links this downward movement to F2Pool depositing 1,000 BTC to Binance, a major cryptocurrency exchange. This move, which was repeated two days earlier, could indicate significant selling pressure in the market. Such large-scale transactions can lead to sudden price changes.
Amidst the current price volatility, the cryptocurrency community is eagerly awaiting ETFs, which could be a potentially major catalyst for Bitcoin bulls. According to financial reporter Katie Greifeld, ETF issuers have a deadline to submit their S-1s, and the SEC is expected to vote on the 19b-4 applications shortly. Approval of both documents could mean that spot Bitcoin ETFs could start trading almost instantly, potentially giving the market new momentum and possibly sustaining the uptrend.
