Crypto News- A recent post by the technical analyst known as CryptoCon has raised concerns about the short-term price outlook for Bitcoin (BTC). These concerns have emerged following the activation of a significant bullish technical indicator known as a ‘Golden Cross’ on the daily chart of the leading cryptocurrency.
Analyst Suggests 8% BTC Correction Prior to Confirmation of Golden Cross
A Golden Cross materializes when the 50-day moving average (MA) crosses above the 200-day MA line, a signal typically interpreted by traders as a strong buy signal and an indication of a potential shift in a cryptocurrency’s long-term trend toward a bullish direction. In the case of Bitcoin, this Golden Cross has recently been confirmed on its daily chart, fueling expectations of a price rally and the potential for a broader market upswing.
Contrary to the prevailing optimism, CryptoCon presents a different viewpoint, suggesting that the cryptocurrency market may undergo a brief correction in the short term before resuming its upward trajectory. To support this prediction, the analyst has analyzed Bitcoin’s historical price movements following previous Golden Cross events. According to historical data, Bitcoin has typically experienced an 8% decline after such events. If this historical pattern were to repeat, Bitcoin’s price might retrace to around $31,600.
However, CryptoCon also believes that Bitcoin is poised for a robust upward movement following this correction. Notably, the analyst points out that two out of the last seven Golden Cross events on Bitcoin’s chart occurred just before the market entered a bull run, and another two were followed by substantial price surges.
At the time of writing, according to data from CoinMarketCap, Bitcoin has experienced a slight 0.09% decline in its price over the past 24 hours, bringing it to a value of $34,290.20. This decrease has further dampened Bitcoin’s weekly performance, resulting in a 0.44% decrease.
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