Bitcoin triggers unprecedented signal, claims analyst
Crypto Banter, in a groundbreaking report, reveals that Bitcoin has recently experienced a golden cross on the weekly timeframe, coinciding with the potential approval of a spot ETF.
In a video published on January 9, the popular YouTube channel Crypto Banter asserts that the market is buzzing with anticipation as the decision on the spot Bitcoin ETF approaches, and there is a possibility of BTC reaching $50,000.
Drawing attention to the technical charts, the analyst emphasizes the stochastic RSI on the Bitcoin charts, which crossed up just after October, leading into a bullish September. The stochastic RSI aims to surpass the 80 zone, indicating that bulls are in control and the market is witnessing strong trending movements.
What is even more noteworthy is that BTC has witnessed the occurrence of a golden cross on the weekly timeframe. This phenomenon takes place when the short-term moving average crosses over the long-term moving average. While there isn’t sufficient historical data to make a direct comparison, the analyst notes similarities to the S&P 500, which has a longer track record than BTC. This suggests that the age of the asset class may explain why such a pattern has not been observed before.
The analyst explains that the golden cross functions similarly in the S&P 500, with the first occurrence dating back to 1899-1900, and resulting in significant upward moves. A golden cross is generally seen as a positive sign in the long run, although investors should anticipate a potential pullback of up to 35% in the short term. However, the analyst advises against selling out of fear, as there are typically six or seven pullbacks in a bull cycle, and BTC has only experienced four so far.
Drawing parallels to the S&P 500, the analyst suggests that if the BTC market follows a similar pattern, investors can expect a prolonged period of a death cross, lasting for several years, before the price starts accumulating and continues its upward trajectory. In the case of the S&P 500, the analyst highlights a 72% surge, followed by an additional 137% increase in consecutive cycles.
In summary, Crypto Banter’s report indicates that Bitcoin’s golden cross on the weekly timeframe, coupled with the potential approval of a spot ETF, has sparked excitement in the market. While investors should be prepared for short-term pullbacks, the overall outlook suggests positive developments in the long run.
