Bitcoin is retesting the “golden cross,” a bullish technical pattern that has historically preceded rallies, according to crypto market analyst Mister Crypto.
In a Sunday post on X, the analyst shared a chart noting that Bitcoin’s (BTC) previous golden crosses led to gains of 2,200% in 2017 and 1,190% in 2020. With BTC currently hovering near $110,000, he suggested that holding above the level could ignite another parabolic move.
“The setup looks incredibly strong,” he wrote, adding that a confirmed breakout could “absolutely explode” Bitcoin’s price in the coming weeks.
A golden cross is a bullish trading signal that happens when a short-term moving average, usually the 50-day, crosses above a long-term moving average, often the 200-day. It signals that momentum is shifting from bearish to bullish, meaning prices may start rising.
Related: Luxembourg sovereign wealth fund dips into Bitcoin ETFs with 1% stake
Bitcoin must hold $110K or cycle could end: Analyst
Crypto analyst Mac also warned that Bitcoin must hold the $110,000 level to avoid signaling the end of the current cycle. In a post on X, he noted that the 4-hour Money Flow Index (MFI) is “deeply oversold,” suggesting that BTC could be due for a short-term bounce.
Mac added that the risk-to-reward setup looks favorable, though he doesn’t expect a major surge in the immediate term. Instead, he anticipates “a little more upward chop next week.”
Meanwhile, Fundstrat’s co-founder Tom Lee believes the recent stock market pullback “may be overdue to an extent,” noting that markets have risen 36% since April and that Friday’s drop was the biggest in six months.
He highlighted the sharp rise in the VIX, a measure of market volatility, which spiked by 1.29%, calling it “the 51st largest ever spike in the VIX,” suggesting that investors were seeking safety.
Lee argued that the volatility spike is typically a sign of a short-term market bottom, as traders rush to hedge rather than sell. “If someone says, ‘Are we higher a week from today?’ I’m going to say the odds are actually really good,” he said.
Related: How high can Bitcoin price go in October?
Trump announces 100% tariffs on Chinese imports
The latest market sell-off followed US President Donald Trump’s announcement that the US will impose 100% tariffs on all Chinese imports starting Nov. 1, in retaliation for Beijing’s new export restrictions on rare earth minerals.
China, which accounts for about 70% of global rare earth supply, recently introduced rules requiring an export license for any product containing more than 0.1% Chinese-sourced rare earths, set to begin Dec. 1.
Magazine: Worldcoin’s less ‘dystopian,’ more cypherpunk rival — Billions Network
