Return of the Golden Cross on Bitcoin: Towards a new bullish phase?
Bitcoin is under pressure in a changing crypto market as it nears an important sign: the Golden Cross. This pattern happens when the 50-day moving average crosses above the 200-day moving average. Many see this as a sign that prices could keep rising for a while. The signal is still not certain, but it is gaining trust each day and increasing traders' hopes. As the lines on the chart get closer, the market waits, ready to see if this cross will mark a big change in the current Bitcoin cycle.
Bitcoin can be imagined as a hero in front of a "Golden Cross" that’s burning bright.
In short, Bitcoin is near a Golden Cross, a key signal that traders see as a sign of rising prices. This comes weeks after a failed Death Cross that caught short sellers off guard. At the same time, Moody’s lowered its outlook for US debt, raising worries about America’s ability to manage its finances. This economic uncertainty is pushing more people to see Bitcoin as a safe place to keep their money, especially given doubts about the dollar.
The Golden Cross is getting a lot of attention now. Bitcoin’s chart shows the 50-day average rising fast toward the 200-day average, but the two haven’t crossed yet. Usually, this signals an upcoming rise in prices. This situation is similar to early 2024, when a similar pattern occurred. Back then, a failed Death Cross scared some traders, but Bitcoin turned around and rose sharply. That helps make today’s situation stand out even more.
Some recent points to note:
The 50-day average is rising quickly and nearing the 200-day average, hinting at a Golden Cross.
The previous Death Cross failed to cause a fall and instead trapped those betting on a drop.
This pattern mirrors early 2024, which led to a big price jump in Bitcoin.
Trading algorithms and big traders are watching this pattern closely. When the crossover happens, many systems could automatically buy Bitcoin.
If the pattern plays out as expected, more investors might jump in, especially systematic traders. But caution is still wise, as macroeconomic problems can overshadow technical signs.
Outside of charts, the bigger economic story plays a major role. On May 17, Moody’s lowered its outlook for US debt, warning about the country’s financial future. This move confirmed worries already growing in bond markets. As confidence in US debt drops, some investors see Bitcoin as a safe alternative. They try to avoid relying on the dollar, which seems less stable now.
Interest in Bitcoin as a safe haven isn't just guesswork. When big financial problems happen or trust falls in major banks, Bitcoin often gains strength. The idea is that Bitcoin, being decentralized, is less affected by inflation and government money tricks. So, today’s rise in Bitcoin can come from strong technical signs but also from this broader belief that it is a hedge against economic problems.