Bitcoin has recently signaled a bullish pattern with a “Golden Cross” on the daily chart, reminiscent of earlier price action this year. This development has caught the attention of crypto enthusiasts, suggesting potential upward momentum for the cryptocurrency. However, technical analysis indicates some key obstacles that Bitcoin must overcome to solidify short-term bullish sentiment.
Bitcoin’s Formation of Golden Cross
Crypto trader Titan of Crypto highlighted Bitcoin’s recent “Golden Cross” on the daily chart, drawing parallels to earlier price movements in 2024. A Golden Cross occurs when a shorter-term moving average, such as the 50-day moving average, crosses above a longer-term moving average like the 200-day moving average. This signal is often interpreted as a bullish indicator for the cryptocurrency.
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However, technical shows that for Bitcoin to show strong positive momentum in the short term, it needs to overcome specific levels that are currently acting as obstacles. These levels include its price, the Tenkan (a short-term moving average), the Kijun (a longer-term moving average), and the upper line of the Kumo cloud (a key area on a chart indicating potential support or resistance).
Right now, Bitcoin’s progress is being blocked by its price, suggesting that it’s facing difficulty moving higher immediately. Crossing these levels successfully would indicate a stronger likelihood of Bitcoin’s price going up shortly.
Short-Term Obstacles
Despite the bullish signal, Bitcoin’s price is encountering resistance due to technical factors, particularly the lagging span’s position relative to critical levels. Hence, the Bitcoin price may continue to trade within the range of $60,900 and $61,400 for some more time, but beyond that, another bearish spell appears to be imminent.
The cryptocurrency is poised to break through these barriers, which could pave the way for further price appreciation.
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