Bitcoin sees the golden cross which last hit 2 months before the all-time high
Bitcoin (BTC) held close to $23,000 on February 7 as a key phenomenon hit for the first time in 18 months.
The Battle of the Bitcoin Crosses begins
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD tracking sideways overnight, having avoided volatility at the week’s first Wall Street open.
Although they failed to turn $23,000 to support, the pair still saw a potentially significant event on February 6 in the form of a “golden cross” on the daily chart.
This refers to the rising 50-period moving average crossing the 200-period moving average. The last time this happened on daily time frames was in September 2021 – two months before Bitcoin’s last all-time high.
Some cryptoanalysts have been watching the cross closely, with Venturefounder, a contributor to on-chain data platform CryptoQuant, claiming that $25,000 could resurface as a result.
“Bitcoin goldencross just happened!” he in summary in a Twitter reaction.
“This potential correction could see BTC retest $20k (200DMA and key support) and in the bullish case, test $25k next. Make $25k support and that’s the nail in the coffin for the bears.”
The picture remained complicated on the day thanks to an upcoming “countercross” on weekly timeframes, where the 50-period moving average remained on track to fall below the 200-period – a phenomenon known as a “death cross” for its inversely damaging impact on BTC- price action.
For chain monitoring resource material indicators, it remained uncertain whether the golden cross alone could drive BTC/USD higher.
“Whether that’s enough to get a legitimate test of the $25k range remains to be seen,” it wrote as part of a commentary on the Binance order book.
An accompanying chart showed major resistance in the form of ask liquidity stacked at $23,500 – the first major hurdle for bulls to overcome in the event of a move higher.
Powell speech ‘only key factor’ in macro week
Another factor on the radar for February 7 came from comments from the US Federal Reserve.
Related: Is BTC Price About to Retest $20K? 5 things to know in Bitcoin this week
Ahead of next week’s prints of macroeconomic data, several Fed officials were set to speak, with Chairman Jerome Powell’s words expected to be the most important regarding market-moving potential.
“Nothing special this week, the only key factor to watch is Powell tomorrow afternoon. Maybe one more swipe for correction and then the party should continue to rally upwards,” part of a Twitter analysis by Cointelegraph contributor Michaël van de Pop tired on February 6.
Van de Poppe added that “buy the dip” could be a suitable option on altcoins in the meantime, as Material Indicators noted was already the case with Bitcoin whales.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
