Bitcoin forms golden cross, upside to follow?

imageCryptocurrency News1 hour ago (Sep 17, 2021 11:42)

© Reuters.

By Samuel Indyk – A major technical indicator, known as a Golden Cross, has formed in Bitcoin. The pattern occurs when a short-term moving average crosses above a longer-term moving average, in this case the 50-Day Moving Average (DMA) has crossed above the 200-DMA.

The technical indicator often signals that a previous downtrend has bottomed and that further upside momentum could be on the horizon.

Once the Golden Cross has formed, the longer-term moving average often acts as strong support. In this case the 200-DMA sits around $45,870.

If the formation of a Golden Cross does lead to further upside for Bitcoin, a firm break and close above $48,000 is likely required before another test of the psychological $50,000 level and then the cyclical high around $52,500.

If the upside momentum fizzles out then the 50-DMA will act as first support at around $46,250 before the 200-DMA.

A move below there and some analysts foresee a drop towards $44,000.

“A significant break below $44,000 could make things interesting,” writes OANDA Senior Market Analyst Craig Erlam, “while a move above $48,000 will put the focus back on $50,000 and may even trigger a shift in momentum that has been absent in previous rallies.”

Bitcoin forms golden cross, upside to follow?

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