The last few days have been torrid for Bitcoin following a plunge from above $10,500 to around $9,550. The top crypto has, however, climbed to $9,727.35 at the time of publication and as it staged this recovery, a golden cross formed on the daily chart.
Golden crosses are viewed as one of the strongest buy signals that herald the beginning of a full-fledged bull market. In fact, the last time BTC experienced this specific golden cross was in October 2015 and April 2019 which was followed by mega rallies. If the same scenario plays out, BTC could smash $25,000 by May this year, at least according to one analyst.
Golden Cross Confirms Bullish Momentum For BTC
A golden cross is a technical pattern that happens when a short-term 50-day moving average crosses above a long-term 200-day moving average. According to analyst The Moon, the golden cross that was recently formed confirms the possibility of a strong upside movement from bitcoin in the near-term.
Another crypto trader Nilesh Rohilla also pointed out the recently confirmed golden cross. Rohilla noted that the last time a similar golden cross was formed in October 2015, BTC surged 75% in a span of 10 days. In April 2019, BTC posted 150% gains within two months. He then noted that if this trend is repeated, BTC could begin its next parabolic climb, potentially reaching $25k by May this year.
Altcoin Market Shows More Strength
Bitcoin (BTC) is the unmistakable leader in the crypto markets with a 62.5% dominance. This high dominance level means that in most cases, bitcoin dictates the movement of the altcoins. But for the better part of 2020, altcoins have been moving independent of bitcoin as seen with the likes of ethereum, Ripples’ XRP, Tezos (XTZ), and Bitcoin SV.
At the moment, ETH is up 6.84% in the last 24-hour period. XRP, BSV, XTZ are also up by 3.34%, 14.58% and 9.57% respectively. Bitcoin (BTC), on the other hand, is down by 0.45% over the same period.
Whether BTC bulls pull off another face-melting ascent in the coming days or weeks after confirming the golden cross remains to be seen. Meanwhile, a break above $10,500 will restore bitcoin’s bull case.
