As the cryptocurrency’s 50-day moving average goes above its 200-day moving average, the price of the flagship cryptocurrency Bitcoin ($BTC) might soon reach $25,000, putting a “nail in the coffin” for $BTC bearish and short sellers.
According to Investopedia, a golden cross has three stages, the first of which requires a downturn to finally bottom out when selling is exhausted. After the shorter moving average “crosses up through the larger moving average to produce a breakout and confirmation of trend reversal,” the second stage begins. A third stage happens when an upswing continues.
Bitcoin’s price charts last created a golden cross on its daily timelines in September 2021, approximately two months before the flagship cryptocurrency’s price reached a new all-time high near $69,000, as originally reported by Cointelegraph.
The golden cross, according to Venturefounder, a contributor to on-chain data platform CryptoQuant, may see $BTC increase beyond $25,000 and become a support level where demand outstrips supply – which might further aid Bitcoin’s price grow in the future.
As CryptoGlobe noted, prominent and highly recognized on-chain Bitcoin expert Willy Woo has just highlighted the current $BTC price rise “coincides with a new trend forming of stablecoins streaming into exchanges on work days exclusively. It appears to be the heat signature of major entities performing the purchasing.”
Notably, ARK Invest recently stated in a research that, based on their positive thesis, the price of Bitcoin might reach $1.4 million per coin in the future, as the cryptocurrency’s “long-term opportunity is rising.”
Bitcoin is now “expected to expand into a multi-trillion dollar market,” according to the business. ARK Invest based its forecasts on the penetration rate of $BTC in several use cases, including corporate treasury, remittance asset, nation-state treasury, emerging market currency, economic settlement network, seizure-resistant asset, institutional investment, and digital gold. In its most optimistic scenario, ARK Invest predicts that Bitcoin’s price would reach $1.48 million by 2030.
Bitcoin is currently selling at approximately $23,000 per coin, following its strongest January since 2013, when it gained well over 40%, surpassing the stock market and gold.
However, numerous observers pointed out on social media that the golden cross may not indicate that the price of $BTC is about to rise in the near future, as on weekly timeframes. $BTC’s 50-period moving average fell below its 200-period moving average, forming a death cross. A death cross denotes a drop in price.