Bitcoin has moved away from the $44,000 level, falling below $43,000 in the last 24 hours. A decrease in buying volume in exchange order books suggests that deeper declines could be expected, while there could also be organized steps to manipulate the market.
At the beginning of 2024, there is a significant configuration that could trigger a major rise in the crypto markets. Highlighted by Alistair Milne, this signal marks the first-ever weekly golden cross in Bitcoin’s history. This signal, a precursor to major rallies known as the golden cross, is seen for the first time on the weekly chart.
An annual gain of 165% would satisfy most investors, while a quick recovery after an oversold condition is set to lead to a crossover of the two-week moving average (MA), which has never signaled a bull market before.
The 50-week and 200-week MAs are significant trend lines for both Bitcoin investors and analysts. According to Milne, this event could be a turning point for crypto.
For the first time in Bitcoin’s history, there has been a challenging bear market where the price has been below the 200-week moving average for such an extended period. The 50-week moving average is now on the verge of creating a weekly golden cross for the first time, by rising above the 200-week MA. This is a bull market signal.
After rapid increases, an inflated RSI, prone to corrections, could indicate a potential pullback risk along with the current weakness in the BTC price, despite exceptions. However, weak pullbacks that have been overcoming tough resistance for some time could turn this bear trap into a potential bull trap.