Bitcoin’s recent formation of the third golden cross in its history is seen as a positive sign for potential price recovery.
Currently, the BTC price has been consolidating strongly around the $29,000 mark, leading to uncertainty among investors due to the subdued price volatility. This development has sparked interest and speculation about the future direction of Bitcoin’s value.
On-chain data for Bitcoin reveals positive changes in the network activity. Despite a recent price correction from $32,000 to $29,000, there has been a consistent increase in the total number of new Bitcoin addresses. This encouraging trend, where network growth is rising while the price corrects, is seen as a bullish signal for a stable long-term BTC uptrend.
Popular crypto analyst Ali Martinez emphasizes the significance of this development and encourages investors to consider buying the dip in the market. The data suggests that Bitcoin’s network is growing stronger, potentially indicating a positive outlook for the cryptocurrency’s future value.
Courtesy: Glassnode
The crypto analyst, points out that several on-chain indicators for Bitcoin signal a bullish momentum. Major oscillators like MVRV, aSOPR, Puell Multiple, and Reserve Risk are all above the 0 line, indicating that the current price correction might be just a temporary blip. Investors are optimistic about Bitcoin’s future potential based on these positive indicators.
Courtesy: Glassnode
Bitcoin’s Golden Cross Signals Price Recovery
Last week on August 4, crypto trading analyst TradingShot pointed out that Bitcoin has recently achieved a golden cross, the third time in its history. This occurrence could mark the start of a new bull rally, potentially driving the price to reach another record high level.
The golden cross pattern materializes when a short-term moving average (50 DMA) rises above a long-term moving average (200 DMA). This indicates a positive trend for the cryptocurrency. In the past, during the two previous golden-cross instances, the BTC price experienced significant rallies afterward.
With the golden cross now appearing again, investors are hopeful that Bitcoin’s price will continue its upward trajectory and potentially set new all-time highs in the near future.
Courtesy: TradingShot
Based on previous golden cross cycles, TradingShot forecasts that Bitcoin’s next upward target could be its current all-time high (ATH) of $69,000. The analyst estimates that Bitcoin may potentially reach this ATH around the same time next year.
However, it’s essential to consider the unique circumstances of the March 2020 COVID-19 crash, which temporarily disrupted the usual pattern due to being an unexpected Black Swan event. Looking ahead, experts predict that the upcoming Bitcoin halving in 2024 might initiate a new market cycle.
Despite the positive long-term outlook, there are short-term concerns regarding Bitcoin’s price potentially dropping below $29,000. As the market evolves, investors closely monitor these factors to make informed decisions.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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