The crypto markets have been able to halt their downwards descent, finding relatively strong levels of support slightly below their current price levels. Bitcoin (BTC) – which recently dropped into the $4,900 region after quickly advancing to $5,400 – has established its recent lows as a region of support and has since been able to tepidly advance higher.
Despite this recent drop, Bitcoin is still on track to form the coveted golden cross technical formation, which has preceded massive bull runs in years past, including that seen following the 2015 bear market.
Bitcoin (BTC) Tepidly Moves to $5,100
At the time of writing, Bitcoin is trading up nominally at its current price of $5,100, up slightly from its daily lows of $5,050.
Over the past several weeks, Bitcoin incurred a massive amount of buying pressure that sent it skyrocketing from one-month lows of under $4,000 to highs of $5,400. Despite the upwards momentum faltering out earlier this week, BTC’s ability to hold steadily above $4,900 is a bullish sign.
CryptoHornHairs, a popular cryptocurrency analyst on Twitter, told his followers in a recent tweet that the $4,900 level is a critical region of support according to a Wyckoff analysis.
“Bitcoin – Wyckoff study – Close below $4.9k on the daily and the ICE shatters,” he said, explaining that a drop below $4,900 will open the gates for significantly further losses.
– Wyckoff study
Close below $4.9k on the daily and the ICE shatters ❄️❄️❄️
— HornHairs 🌊 (@CryptoHornHairs)
BTC Still Close to Forming Golden Cross Pattern
The golden cross pattern is a highly bullish technical formation that occurs when an asset’s 50-day moving average (MA) and 200-day MA cross one another, which has previously preceded large bull movements, including the meteoric price climb that BTC incurred following the end of the 2015 bear market.
Moon Overlord, a popular cryptocurrency analyst on Twitter, spoke about the possibility that BTC is currently forming this revered pattern in a recent tweet, noting that the cryptocurrency may still be close to forming this pattern despite the recent price drop that halted Bitcoin’s upwards momentum.
“Golden cross on #bitcoin forming? It would be the first since October 2015 when $BTC was around $200,” he explained in a recent tweet.
//twitter.com/MoonOverlord/status/89598465
Assuming that Bitcoin’s bulls are able to hold the cryptocurrency’s price above $4,900 in the near-term, a golden cross pattern may soon form – which could confirm the start of a fresh and lasting bull trend.
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