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Despite the unsuccessful attempts by the price of bitcoin to restore support at $23,000, on the daily chart, moving averages formed a “golden cross” combination, a harbinger of a bull market.
In the image below 50-day MA (marked in red) crossed above the 200-day MA (in blue).
The last time the “golden cross” formed was in September 2021, two months before Bitcoin reached its all-time high.
However, a “Death Cross” appeared on the weekly chart, a mirror situation suggesting a bearish scenario.
Collaborating with CryptoQuant, analyst Venturefounder sees a pullback to $20,000 (200 daily MA) with a subsequent exit to the psychological level of $25,000 as a further development of events.
#Bitcoin goldencross just happened!
This potential correction could see #BTC retest $20k (#200 DMA and key support), then in the bullish case, test $25k next.
Make $25k support and it’s nail in the coffin for the bears. pic.twitter.com/baPFOTECCG
— venturefoundΞr (@venturefounder) February 6, 2023
CryptoQuant analysts see the golden cross as an addition to the signals of a number of other important indicators that indicate the beginning of the accumulation phase of coins in anticipation of the next halving.
#Bitcoin Enters Technical Golden Cross and a New Paradigm
«As a summary, bitcoin currently sits at an intersection of multiple crucial indicators, heading into a new paradigm.»
by @oinonen_t— CryptoQuant.com (@cryptoquant_com) February 5, 2023
Crypto trader and host of The Wolf Of All Streets podcast, Scott Melker, has set a target of $25,212 as his benchmark. A break of this milestone will neutralize any bearish theses, he added.
$25,212.
That’s the line for $BTC.
A break above would be the first higher high since $69,000 and would technically invalidate the bear thesis.
— The Wolf Of All Streets (@scottmelker) February 2, 2023
Earlier, Adam Farthing of B2C2 came to a similar conclusion.
Recall that Glassnode stated a transitional phase from a bear market to a bull market.
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