In brief:
- Bitcoin has had a hard time breaking the $10,000 resistance level since early May.
- Traders are divided as to what move BTC will make next.
- One scenario could see Bitcoin down to $8,500.
- However, a golden cross on the daily chart could provide the fuel needed to break $10,000.
With the Bitcoin halving event firmly behind us, the new conundrum facing traders and investors is what trajectory BTC will decide to move in the coming days and weeks. Many bears had started celebrating when Bitcoin failed to launch before the halving event and they were anticipating that BTC would proceed to retest $6,600 or even $3,700. However, the money printer at the Fed continued to go Brrr and the plans by bears were destroyed by a resurgent Bitcoin which is now at crossroads.
Bitcoin Might Retest $8,500
Further pleading the case for the bears, Bitcoin has been rejected 3 times since early May as it attempted to break the psychological level of $10,000. Additionally, BTC could be printing what is known as an Adam and Eve top as elaborated in the tweet below by @cryptodude999.
A Golden Cross on the BTC/USD Daily Chart
However, there is a glimmer of hope for the bulls as a Golden Cross is forming on the daily BTC/USD chart. A golden cross is a bullish signal provided when a short-term moving average crosses a long-term moving average from the downside. In this case, the 50-day moving average (white) is about the cross the 200-day moving average (green) on the daily Bitcoin chart.
Comparison with the Golden Cross in April 2019
The current golden cross is somewhat similar in trajectory as the one witnessed on 24th April 2019. The latter golden cross preceded Bitcoin’s bullish move from $4,400 to $14,000 only two months later.
If the current golden cross turns out to be bullish, it could be the catalyst needed to propel Bitcoin above $10,000. Furthermore, if the 2019 momentum is replicated in the coming weeks, Bitcoin might just play out as anticipated by MagicPoopCannon in his prediction that BTC could go as high as $17,200.
As with all technical analyses, traders and investors are advised to exercise risk management and to implement stop losses to preserve capital.
(Feature image courtesy of Unsplash.)