Bitcoin has recently gained significant momentum, with the leading cryptocurrency by market value forming a “Golden Cross” on its weekly chart for the first time. This bullish formation occurs when a token’s short-term moving average crosses above its long-term moving average, specifically Bitcoin’s 50-week moving average rising above the 200-week moving average. Traditionally viewed as a positive sign, the Golden Cross could indicate the potential for a sustainable upward trend.
However, it’s important to remember that the Golden Cross can sometimes act as a lagging indicator. By the time the formation is recognized, the market may have already accounted for the uptrend, meaning the model may confirm rather than predict a new trend. Despite the historical formation, Bitcoin’s price stumbled today, dropping by $1,000, or 2.3%, within just 7 hours.
On-chain data analytics firm Lookonchain attributes this downward movement to F2Pool depositing 1,000 BTC to Binance, a major cryptocurrency exchange. This deposit, repeated two days prior, could indicate significant selling pressure in the market. Such large-scale transactions can lead to sudden price changes.
Amidst current price volatility, the cryptocurrency community eagerly anticipates ETFs, which could be a major catalyst for Bitcoin bulls. According to financial reporter Katie Greifeld, ETF issuers have a deadline to submit S-1s, and the SEC is expected to vote on 19b-4 applications soon. Approval of both documents could mean spot Bitcoin ETFs may start trading almost immediately, potentially injecting new momentum into the market and possibly sustaining the bullish trend.