Calculations by analyst Rekt Capital indicate that the Golden Cross would arrive in the next few days. The value of Bitcoin has gone up by 50% from its price below USD 29,000 on July 21st.
A pattern that heralds a pronounced bullish move for Bitcoin (BTC) is about to be fulfilled. The Golden Cross appears on a candlestick chart when the 50-day moving average (MA) crosses upward through the 200-day MA.
Some traders predict that the recent recovery in the price of Bitcoin could cause the 50-day MA to cross through the 200-day MA in the next few days. These moving averages are average values in specific time ranges and vary based on the price movements of BTC.
One of the most prominent analysts who recently mentioned the closeness to this pattern is Twitter user Rekt Capital (@rektcapital). His calculation indicates that the arrival of the Golden Cross will occur in the next few days.
This indicator, used in the technical analysis of Bitcoin and other cryptocurrencies, serves to forecast price movements. Although it comes from traditional markets, it is possible to apply it to other assets.
Rekt Capital believes that the arrival of this pattern would confirm that BTC returned to the bullish trend that it had lost between May and June. Additionally, he said that it would reduce the effect of a bearish pattern that occurred a couple of months ago.
In June, there was a bearish pattern opposite to the one approaching, called the Death Cross. When that pattern occurs, the 500-day moving average falls below the 200-day moving average.
According to Rekt Capital, the upcoming Golden Cross will fully confirm an invalidation of the Death Cross occurring in June.
That month, the analyst anticipated the arrival of the Death Cross, which has historically been an omen of a bearish market. However, that cross has previously preceded sharp rises in subsequent months.
The Price of the Pioneering Cryptocurrency Returns to the Bullish Trend
Following the May cryptocurrency market crash, Bitcoin has finally shown signs of recovery in recent weeks. The price of the cryptocurrency exceeded USD 46,000 for the first time in two months.
In the last two months, Bitcoin has recovered 50% of its market value. That increase takes as a reference the lowest point below USD 29,000 on July 21st.
The price of BTC is far from the all-time high above USD 64,000 that it reached in April. However, estimates from various analysts predict that it will exceed that mark long before the end of 2021.
Renowned analyst Willy Woo and researchers at Bloomberg consider that the value of Bitcoin will exceed USD 100,000. For his part, PlanB argues that the cryptocurrency could comply with what the stock-to-flow model foresees. In other words, he said that it would reach a price of USD 288,000.
The relevance of Bitcoin in the world economy and its recent recovery above USD 46,000 proves that a growing number of people trust it. It is only a matter of time before the pioneering cryptocurrency reaches the levels that market analysts have predicted.
By Willmen Blanco
