Following a tough May, Bitcoin‘s price is finding it hard to stay above the $27,000 mark on the first day of the new month. The debt ceiling agreement has been resolved and is slated for Senate approval in the forthcoming hours, paving the way for Biden’s signature. Despite positive comments from Fed members, Bitcoin’s price continues to move within a narrow range, but according to a renowned crypto analyst, this situation will soon end.
Will Bitcoin and Altcoins Rise?
The anonymous host of the cryptocurrency commentary channel, InvestAnswers, addressed half a million investors in his latest market update. According to the anonymous analyst, once the 50-week moving average takes back over the 200-week moving average, we will witness Bitcoin’s swift rise. This occurrence, known in technical analysis as the golden cross, signals a bullish trend, most often in a delayed manner.
This event, the renowned crypto analyst suggests, will take place in August.
However, what’s crucial is that we intersect the 200-week with the 50-week, and we never before punctured the 200-week moving average, which is the green line, with the 50-week moving average, the red line. So, this time we passed it and it’s a death cross. Now, what’s interesting and we’ve discussed this before, a death cross doesn’t necessarily mean the market will drop. So, you can see the market fall when this death cross occurs, but only for a few days and then it bounces back up. It was wild. But right now… in August 2023, the green will puncture the red and this usually means we are about to go wild, 65% to 70% of the time when a short-term line crosses a long-term line, creating a golden cross. So this could be good. August is usually a calm period for the market, low-volume, participants are at the beach or somewhere else, but this could be another catalyst for us looking forward.
The Future of Cryptocurrencies
The outlook for June is positive for now, and the mid-term trend will shape up following the mid-month interest rate decision. The debt ceiling issue is being resolved, and more good news is needed from Hong Kong in the coming days. This issue is significant for the medium-term trajectory because Web3 is a sector that major world governments, primarily China, believe in for the future. Hong Kong, through China, is preparing for this future.
If all goes as expected and the bankruptcy of Genesis and others does not create a significant FUD wave in the markets, a rise in the markets in August could be possible. However, on the other side, there is the ongoing pressure from the SEC and the possibility of further tightening from the Fed.