A new 'golden cross' has appeared on Bitcoin's daily chart, sparking excitement among investors . The 'golden cross' is formed when the 50-day simple moving average (SMA) crosses above its 200-day equivalent, a signal that often precedes significant price gains .
Historically, such 'golden crosses' have led to gains in excess of 2,000% . Popular trader Merlijn pointed out that every time this signal shows up, the price of BTC goes vertical . Examples include 2017 and 2020, which saw massive surges in the market . In October 2024, a golden cross coincided with BTC trading at around $65,000, resulting in it reaching new all-time highs of nearly $110,000 in the three months that followed .
Since the latest golden cross was confirmed in late May, Bitcoin has already shown upward movement, although the gains have been relatively modest, reaching 12% so far . Merlijn estimates that Bitcoin has the potential to reach $155,000 in the coming months, as a classic bull market signal returns .
However, it is important to note that 'golden crosses' can fail . One example is February 2020, when a 'golden cross' preceded a 62% price crash due to global lockdowns . Therefore, traders should use 'golden crosses' with caution and consider other technical and macroeconomic indicators .
While Bitcoin is consolidating below $120,000, there is a growing consensus that Bitcoin will break out above this level again . If the historical pattern continues, Bitcoin could reach $150,000 by the end of 2025 .
Furthermore, capital inflows into exchange-traded funds (ETFs) are increasing, indicating growing institutional confidence . For example, BlackRock accumulated $3.85 billion worth of Bitcoin in June, a sign of strong institutional confidence .
While some analysts suggest a short-term pullback before Bitcoin reaches new highs, others, like Christian Chifoi, foresee a potential surge towards a new all-time high (ATH) at $160,000 .