Bitcoin, the ever-changing giant of the crypto world, has once again been in the spotlight with a recent bullish signal, the elusive “golden cross” on the daily chart. This development is reminiscent of the price spike earlier this year and sparked speculation about the crypto market's potential upward momentum.
However, beneath the surface of excitement lies a landscape littered with technical hurdles that Bitcoin must overcome to consolidate short-term bullish momentum.
A golden cross appears
Cryptocurrency trader Titan of Crypto highlighted Bitcoin’s recent “golden cross” on a daily chart, drawing parallels with early price movements in 2024. A golden cross occurs when a short-term moving average, such as a 50-day moving average, exceeds a reference value. Long-term moving averages, such as the 200-day moving average. This signal is often interpreted as a bullish indicator for cryptocurrencies.
However, technical analysis shows that in order for Bitcoin to show strong positive momentum in the short term, it will need to overcome certain levels that are currently blocking it. These levels include price, tenkans (short-term moving averages), bases (long-term moving averages), and cloud tops (important areas on the chart that indicate potential support or resistance).
Bitcoin’s rise is currently hampered by these technical barriers, as evidenced by its struggle to break through immediate price resistance. Success in overcoming these levels would not only demonstrate Bitcoin's resilience but also portend an impending price rise.
Plan your future path
Despite the bullish signals, Bitcoin price is facing resistance due to technical factors, especially the lagging span position relative to critical levels. Therefore, Bitcoin price may continue to trade within the $60,900 and $61,400 range for some time, but beyond that, another bearish spell looks imminent.
Cryptocurrencies are poised to break through these barriers, potentially paving the way for further price increases.
Also check out: Bitcoin Price Catastrophe: Is Your Crypto Portfolio Doomed? Here's What's Next
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