This pattern, known as a golden cross in the market, predicts price growth in the upcoming months, according to an analyst from on-chain analytics company Jarvis Labs.
The last golden cross for bitcoin occurred in 2021, and for investors, it feels like a distant memory. The bullish wave was able to reach fresh all-time highs at this point thanks to the cryptocurrency (ATH).
Bitcoin saw a golden cross 510 days prior, in September 2021, before falling to a low of $29,000. The most popular cryptocurrency on the market then rose to previously uncharted level in November 2021, increasing by 45% since then.
2015 saw a 6566% increase in Bitcoin, reaching an all-time high of $20,000. In April 2019, when the price action exhibited a golden cross like it did today, Bitcoin increased by 154% and touched $14,000.
In addition, Bitcoin increased by 45% in 2021 as a result of the appearance of the golden cross effect, reaching its most recent and current record high of $69,000.
The macroeconomic climate and how the cryptocurrency market is positioned when the golden cross appears on the Bitcoin charts were covered in a recent newsletter from the Jarvis Labs team and a crew member writing under the alias “JJ the Janitor.”
Every time this has happened to Bitcoin, it has demonstrated the emergence of a fresh macrobullish trend.
For the first time since September 2021, the 50-day ($19,820) has just crossed the 200-day ($19,720). The 50-day Moving Average (MA) is shown by the green line, while the 200-day MA is shown by the red line.
Prices fall shortly after each cross, triggering a “brutal shake-out in the market,” according to Jarvis Labs, before it achieves fresh highs. This market reversal gives the new trend time to stabilize before a “full-blown” bull market starts.
Before the bull market seized control in September 2021 and allowed the price of Bitcoin to rise from $48,000 (when the golden cross event happened) to the milestone of $69,000, BTC saw a minus -20% retracement bringing it below $40,000.
The DXY and a New Bitcoin Bull Market are Converging
By the end of January, Bitcoin had risen from its starting point of $16,000 to almost $24,000.
According to Jarvis Labs, the DXY’s trajectory supports the notion of a bull market in cryptocurrencies. Before taking off, the emerging asset class may go through a “severe shake-out.”
The Jarvis Labs team has also noticed a resurgence of enormous whale wallets, a hint that significant wealth has been building since the beginning of 2023.
This supports our “bucking bull” theory, which predicts further upside potential along with more volatility.
The price of Bitcoin has decreased over the past 24 hours, is down 4.1% from yesterday, and has had a 7.4% retracement over the past week.