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Bitcoin eyes a golden cross as it trades above $71,000
Bitcoin has climbed more than 12% in a week and is back above its 200-day simple moving average near $69,005, setting the stage for a potential 50-day to cross above it.
A golden cross may be forming in bitcoin’s chart as the cryptocurrency trades above $71,000, a level that has come alongside a sharp short-term rebound, according to CoinDesk. The technical pattern is widely viewed as a bullish long-term signal when bitcoin’s 50-day simple moving average rises above its 200-day simple moving average.
CoinDesk notes the specific levels involved: bitcoin’s 50-day SMA is around $63,976, while the 200-day SMA is near $69,005. For the pattern to emerge, the two moving averages must keep rising in the same direction and the faster 50-day line must cross above the slower 200-day line.
Bitcoin is currently slightly above its 200-day SMA and has gained more than 12% over the past week, CoinDesk said. The 200-day SMA, which tracks the average of prior closing prices over 200 days, is often used to gauge whether the market is shifting from a longer downtrend to an uptrend.
Still, CoinDesk cautions that the move could prove to be more of a relief rally than the start of a sustained bull trend. A decisive drop back below the 200-day SMA could weaken the bullish case for a longer-term trend change.
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