Those who were gleefully tracking Bitcoin’s progress above $10,000 less than a week ago will be dismayed to see BTC value head back down to around $9600 as of this morning.
Many would describe Bitcoin’s current price oscillation as “wildly fluctuating.” We seem to endure these spells of volatility in between steady sideways crawls, where bitcoin will quiet down for a while, and then just take off like a high gust of wind took after it. Or maybe it’s more like one of those trick dollar bills tied to a fishing line…
Although the current price activity is decidedly negative, with Bitcoin dropping the better part of $1000 overnight, some suggest that technical details indicate a bigger bull run may be on the horizon.
George Georgiev at Cryptopotato, looking at BTC from today’s vantage point, covers some of these indicators:
“A rare bullish signal took place this week,” Georgiev writes. “The Golden Cross, as it’s commonly referred to, is a phenomenon that happened despite the price of Bitcoin dropping from $10,500 down to its current level at around $9,800. Historically, this has caused BTC to surge in value in the mid-term.”
Georgiev admits that Bitcoin “went on a downfall” recently, but suggests that this golden cross, where Bitcoin’s 50 day moving average crosses its 200 day moving average, may take Bitcoin higher citing a similar incident in April 2019.
“After the Golden Cross took place in April last year, the price surged to its yearly high at around $14,000 in June – approximately about 60 days after the cross happened. This marked an increase of nearly 165% in the given period,” Georgiev writes, while being careful to clarify that past action is no guaranteed indicator of price activity this time around.
Omkar Godbole at Coindesk has a slightly different take.
“While a long-term chart indicator has just made a bullish call, bitcoin (BTC) is struggling to gather upside traction and looks vulnerable near the seven-week rising trendline support,” Godbole writes. “In what was possibly going to gift Bitcoin prices a lift, the 50-day moving average (MA) has crossed above the 200-day MA, confirming a golden crossover, a long-term bull market indicator.”
Keep an eye on BTC – because the smart money agrees – it’s going to do “something.”