Analyst warns of Bitcoin elections: 'Golden Cross' is approaching!
According to the analyst, the critical threshold must be exceeded in order for the market data pointing to a rise in Bitcoin price to become reality.
Bitcoin (BTC) and the cryptocurrency market in general have witnessed high price volatility with fake news about the Litecoin (LTC) currency. However, the general structure of the market did not change. In fact, Bitcoin's price may even be bottoming out as the golden cross pattern begins to form.
Besides, reserves on exchanges are at a record low. This is a tremendous signal of strength and shows that most investors buy their Bitcoins from exchanges, reducing the overall supply that can be sold in the market.
Will the Golden Cross model blow the price of Bitcoin?
The daily chart of the BTC/USD pair points to several important data. First and foremost is the potential golden cross model that is about to happen. During the summer months, the main focus was on the death cross as the weather turned extremely negative and many traders expected further declines as a result.
However, the market is in an uptrend, even though the crossing of the moving averages (MA) is a lagging indicator. However, even if the intersection does occur, it cannot be deduced that the market will definitely continue in this direction.
At the moment, the gold cross can be interpreted as a bullish signal, especially as the price of Bitcoin is poised to break above the moving averages. If this happens and Bitcoin's price rises above the MAs, these levels could act as new support for a larger rally.
Key levels to watch on the daily BTC price chart
A week ago, the price of Bitcoin went through a heavy correction from the market of 52,000. However, Bitcoin price was in a nice support context and formed a long wick. That's how long wick, buy pressure and a new boost come.
Like before in the literature, there's been another price volatility being seen with the real news that has been sampled with Walmart in the past few days. There is a fix that was made to make this one even and complete.
The best thing to do in a move in such a situation is to watch the markets on the higher timeframes. Because it shows a wide range of levels that you should watch.
These critiques to watch still cost between $42,800 and $44,000. Continuation in this area will continue, the right move is likely to continue upward. It has been tested by another heavy minor correction, but markets remain best surpassed if it remains above $42,800 to $44,000.
This high, fake Litecoin news may cause some market volatility but critical support between $42,800 and $44,000.
For an upward move, Bitcoin price needs to consume $47,000 as it is available. If it breaks that much, you could potentially take advantage of 50,000 redemption campaigns before you take advantage of the all-time high education.
Total value of cryptocurrency market at critical threshold
The total market cap of cryptocurrencies holds significant support. As long as the total market cap remains above $2 trillion, the possibility of a rise to an all-time high will remain.
As the aggregate market cap tests the all-time high once again, the probability of a breakout of Bitcoin price to all-time highs increases.
However, the overall value of the cryptocurrency market will hit the record faster than Bitcoin, most likely as altcoins have outperformed Bitcoin lately.
Bullish divergence and descending wedge
Bitcoin's four-hour chart points to a potential descending wedge structure that is likely to break to the upside. The most important level to break on the upside is the $47,000 resistance as it has acted as a strong resistance since the last correction.
Since the previous correction happened so sharply, once the price of Bitcoin rises above $47,000, it could continue all the way up to $50,500 as there aren't too many levels for the price to reject.
Of course, this is not a guarantee that the Bitcoin price will break upwards. Overall, if the price of Bitcoin can form a higher bottom around the $45,000 region, this will confirm the bullish divergence and then a breakout towards $47,000. This place plays the role of strong resistance to breakage.
On the downside, the most important support to hold is between $42,800 and $44,000. If this support fails to work, the $38,500 to $40,000 level should be the next target zone.