All eyes have been on Bitcoin recently, with it threatening to confirm a golden cross formation. As previously mentioned, this has been a big event for Bitcoin historically, as it’s only confirmed this cross a couple times since 2015. Below we take a look at price action and assess the overall setup.
Bitcoin Price Setup
As we mentioned in a previous Bitcoin price analysis, all eyes were on the 50 day and 200 day moving averages. We outlined that this was a crucial event for Bitcoin price, since it’s something that happens rarely. Going back all the way to 2015, one can quickly see that this event has only happened 2 other times. In both scenarios, Bitcoin price has experienced strong upward momentum as sentiment shifted up. During both events, price action resulted in:
- April 2019: 184% gain ( from $4,500 to a high near $12,800)
- October 2015: 7,000% + gain ( from $258 all the way up to Bitcoin highs )
Bitcoin Price Projection
With the golden cross being confirmed on the daily, it’s setting Bitcoin up to accept the key resistance level at $10,000. It most recently rejected this level, which caused the sell-off not too long ago, but it’s a great sign that Bitcoin price is retesting. The signs point towards strong positive momentum right now.
BTC price should now be eyeing the $11,000 test on the upside. Right now it makes most sense to assess price action on a shorter term basis to assess overall outlook. With that being said, $11,000 seems to be the target on the upside. IF that were to be accomplished, you could then see a $12,400 test which would make everything extremely interesting. On the flip side, if BTC price decides to sell-off for some unknown reason, it would be eyeing that $9,400 test that we referenced as well on previous technical analysis.
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