Key takeaways:
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Bitcoin is close to a gold cross that led to 45-60% price rallies in the past.
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Basics such as Rising M2 supply and commodity tensions support a bullish outlook.
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Bearish differences -and over -thinking show that there is still a BTC risk falling below $ 100,000.
Bitcoin (Btc) is likely to confirm a “Golden Cross“In its sunny chart by the end of May, a technical pattern that has taken place in recent years has often preceded the rallies.
Previous gold crosses led to 45-60% BTC price rallies
Until May 20, the 50-day simple moving of Bitcoin (50-day SMA; the red wave) looks at a near more than 200-day SMA (the blue wave) for the first time since October 2024, forming a golden cross.
Previously, the BTC price gained more than 60%, along with Donald Trump’s reelection as the US president playing a key role.
In October 2023, the Golden Cross was followed by a 45% BTC price rally, assisted by Bitcoin ETF Euphoria. September 2021 saw 50% BTC prices after painting a similar SMA crossover.
Bitcoin’s gold crosses may fail
Using indicators that have worked in the past are not a guaranteed approach.
Entrepreneurs found that in February 2020, when the Golden Cross of Bitcoin preceded a 62% price crash, especially due to Global Market Route led by COVID-19 lockdowns.
That episode emphasizes the importance of using gold crosses with greater technical and macro indicators while focusing on the possibility of unexpected events.
Today, Bitcoin’s upcoming Golden Cross has aligned most of the supporting foundations, putting the signal on the Ledger’s bullish side.
Increase M2 supply of money and Easing US-China trade tensionsfor example, has pushed bets into a New record high for bitcoin.
What is noteworthy at this time is the BTC’s signing of a correction after the Kamag -child index of strength (RSI) crossed above the overbought threshold of 70 earlier in May.
Related: Bitcoin trading in six figures territory shows BTC is ready to bring ‘baton’ of gold-fidelity exec
Thus, instead of an immediate rally after the cross, Bitcoin may first return its support to SMA, sitting around $ 92,400-95,000 ranges on May 20.
A growing Bearish divergence Between rising bitcoin prices and falling RSIs expand the chances of short -term downside. However, some technical indicators see the BTC prices have rally towards $ 150,000 In the coming months.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
