Bitcoin Propels Above 30k; What Does the 1-Year Chart Say?
It was back in February that I did my last post with a chart of Bitcoin. Back then, I had written that it appeared to be approaching a golden cross and the price action was neutral. I'm certainly not a prognosticator, and it's easy to look back and say "I told you so." Although it was a bit delayed, that golden cross did indeed play out:
The golden cross is a technical indicator, which usually precedes a bullish move. The cross is when the 50-day moving average (orange line) crosses above the 200-day moving average (blue line). I am watching closely, as the 1-year chart is very close to turning overall bullish. The next level I'm watching is the $32,297 price which has not been seen since June 2022. For now, I view that as the next resistance to break through, then $35k and $30,000 acting as short-term support.
I am also watching the relative strength index (RSI), which is just peaking into overbought territory. What this tells me is that the price will likely dip below $30k again in the coming weeks.
I should note again, as I did above, that I am not a price predictor. I just look at the chart and try to make an educated guess, based on indicators, as to where the price action may be going. As the current price is above both the 200-day and 50-day moving averages, I still view the short-term trend as very bullish. If we end up seeing a break of $40k over the summer, all-time highs would be very much in the cards for the latter part of 2023.
Evidently, Galaxy Digital founder Mike Novogratz thinks a similar situation will play out if the US Federal Reserve starts cutting interest rates this year. "If rates keep falling, then Bitcoin will be in the gold zone and could reach $40,000," he said.
Has the bear market on Bitcoin ended? It is too soon to say, when looking at the all-time chart. Another re-test of $20k is certainly not out of the question, but it is safe to say that 2023 has been very kind to the price of the first and largest cryptocurrency. As for me personally, I am HODLing no matter what happens.
