After it opened the week with bulls and bears fighting for domination, Bitcoin (BTC) has started to move in a more positive direction and is about to make a historical golden cross chart pattern, a bullish sign that will likely lead to a significant price gain for the decentralized finance (DeFi) asset in the near future.
Indeed, Bitcoin is nearing the first golden cross between the moving averages (MA) on 20 observed time periods and that of the 200 periods, which has never occurred in its history, according to the observations by the cryptocurrency market analyst Moustache, also known as el_crypto_prof on May 30.
Golden vs. death cross
As the crypto expert further clarified, “at the same time, both bands are serving as support right now,” whereas the death cross in September 2022 had happened right before the collapse of the crypto exchange FTX, adding that:
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“It’s time to put the dark times behind us.”
Specifically, a golden cross refers to a situation when a short-term MA moves above a longer-term MA, typically representing a bullish trading signal. On the other hand, a death cross happens when a short-term MA drops below a longer-term MA, usually suggesting a bearish trading sign.
At the same time, another pseudonymous crypto trading specialist, Trader Tardigrade, stressed that analysts could divide the macro Bitcoin chart into four phases in each cycle and that the maiden cryptocurrency was at the time of publication “in between Recovery bull phase (Bull 1) and Parabolic bull phase (Bull 2).”
Bitcoin price analysis
By press time, Bitcoin has reached the price of $27,850, recording a decrease of 0.10% in the last 24 hours, a 1.88% gain across the previous seven days, while losing 4.69% on its monthly chart, as per the latest data retrieved by Finbold on May 30.
Earlier, crypto expert Ali Martinez noted that Bitcoin had neared the ‘hope’ stage in the psychology of a market cycle, which indicates a belief that ‘recovery is possible’ and which preceded the ‘optimism’ stage in which ‘this rally is real,’ while whales and sharks continued to accumulate.
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