Bitcoin formed a historically bullish pattern when its 50-day moving average crossed over its 200-day moving average. According to analyst at Jarvis Labs, a network analytics companythis pattern is known in the market as the golden cross and predicts price growth in the coming months.
Bitcoin’s last golden cross occurred in 2021 and seems far in the rearview mirror to investors. At this time, the cryptocurrency was able to lift the bullish wave to new all-time highs (ATH).
510 days ago in September 2021, Bitcoin saw a golden cross before hitting a low of $29,000. After that, in November 2021, the most famous cryptocurrency in the market climbed into never-explored territory, rising by 45% since then.
In 2015, Bitcoin soared 6566% to an all-time high of $20,000. In April 2019, Bitcoin surged 154% to hit $14,000 when the price action saw a golden cross like today.
In addition, in 2021, Bitcoin is up 45% after the golden cross effect materialized to reach its latest and current all-time high of $69,000. But can Bitcoin confirm a new bullish macro?
wild bull
A recent white paper from the Jarvis Labs team and team member alias “JJ the Janitor” looked at the macro environment and how the crypto market is positioned as a golden cross materializes on the Bitcoin charts. The analyst stated:
“Golden Cross” can be seen as the first flowers of spring. This happens when the 50-day moving average rises above the 200-day moving average. Every time this has happened to Bitcoin, it has confirmed the presence of a new macroeconomic bullish trend.
The 50-day ($19,820) just surpassed the 200-day ($19,720), creating Bitcoin’s first golden cross since September 2021. The green line is the 50-day moving average (MA) and the red line is the 200-day moving average. MA day.
According to Jarvis Labs, prices fall shortly after each crossover, causing a “brutal shake-up in the market” before it hits new highs. This shake-up of the market allows the new trend to take hold before the “full-blown” bull market arrives.
Before the market took over the bull trend in September 2021 that allowed the price of Bitcoin to hit the $69,000 milestone from $48,000 (when the golden cross event occurred), BTC experienced a minus-20% pullback, dropping it below $40,000.
DXY merges with new Bitcoin bull market
The US Dollar Index (DXY) has been in a downtrend since the fourth quarter of 2022. According to Jarvis Labs, since the dollar is inversely correlated with cryptocurrencies, the downtrend of the former could open the gate for a “crypto rally in early 2023.”
DXY is down 12% from the September 2022 high of 114.80 to 100.80. Meanwhile, by the end of January, bitcoin had climbed from a low of $16,000 to over $24,000.
For Jarvis Labs, the DXY trend coincides with the idea of a cryptocurrency bull market. However, the nascent asset class could experience a “major shake-up” before going full steam ahead.
In addition, the Jarvis Labs team has spotted the return of large whale wallets, indicating that a lot of money has been accumulating since the beginning of 2023.
The analyst had this to say about the chart above and its potential bullish implications for Bitcoin:
This is in line with our wild bull theory that there will be additional upside but also more volatility in the future.
Bitcoin has fallen over the past 24 hours, down 4.1% from yesterday and has recorded a 7.4% retracement over the past seven days.
Featured image from Unsplash, charts from TradingView.
Credit : www.newsbtc.com
