‘Early bull market’ — Bitcoin price preps 1st ever weekly golden cross
2023.12.07 12:17
Bitcoin (BTC) is lining up an “early bull market” as a unique chart feature plays out for the first time in history.
In a post on X (formerly Twitter) on Dec. 7, entrepreneur Alistair Milne drew attention to Bitcoin’s first ever weekly “golden cross.”
Bitcoin goes from death cross to golden cross in 10 months
Recent BTC price upside has delivered considerable profits to various Bitcoin investor cohorts, but 165% year-to-date gains are now significant for another reason.
Should current performance continue, Bitcoin will witness a crossover of two weekly moving averages (MAs) which have never delivered such a bull signal before.
The 50-week and 200-week MAs are key trendlines for Bitcoin traders and analysts alike. The latter is the ultimate bear market support level, and it has so far never decreased in value.
The 200-week MA made the headlines earlier this year when spot price fell below it in an unprecedented move.
Now back above, BTC price strength is on the way to taking the 50-week MA trendline above the 200-week counterpart. Known as a “golden cross,” on lower timeframes, this is considered a classic bullish signal, and for Milne, the impetus is that considerable upside could be in store should the phenomenon play out.
“This bear market was the ‘worst’ in that we spent time under the 200-week moving average price (red) for the 1st time in Bitcoin’s history,” he commented.
“The 50-week moving average will now soon cross back above the 200-week MA making a ‘golden cross’ for the 1st time. QED: Early bull market.”
BTC/USD 1-week chart with 50, 200MA. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView suggests that BTC/USD could even achieve the weekly golden cross before the end of 2023.
Bearish BTC price predictions endure
As Cointelegraph reported, not every popular market commentator is bullish on Bitcoin after its swift march to $44,000 this week.
Related: Bitcoin HODL Waves: 2020 bull market buyers now control 16% of supply
Some believe that buyer momentum is exhausted, and that powerful large-volume sellers are still able to drive the market significantly lower.
Among them is popular trader Crypto Chase, who revealed a short BTC position as Bitcoin crossed $43,000. What comes next, he warned, could involve a trip all the way to the low $20,000 range.
“I’ve not changed bias. I’m still bearish from the 40’s looking for low 30’s or even low 20’s before new ATH’s, and that’s where I’m at atm,” part of X analysis read on the day.
Crypto Chase added that only a move to new all-time highs, or ATHs, would change the prognosis, but that he “did not believe” this to be on the way.
He is not alone. Still holding firm on this even more bearish BTC price prediction is controversial trader Il Capo of Crypto, who maintains that $12,000 is Bitcoin’s true bottom target.
In a post to Telegram channel subscribers on Dec. 1, he called for a “big dump to $30k-31k with altcoins dumping about 30-40%.”
“That would be the beginning of the capitulation event,” he claimed.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
