A key bullish technical event is about to play out for Bitcoin (BTC) that could set the coin on a long-term upward trajectory. Benjamin Cowen, a prominent analyst, has highlighted that the Bitcoin golden cross will form soon, with potential for a price rally.
Bitcoin golden cross signals looming bull run
Historically, golden crosses in Bitcoin emerge just before major rallies, which leaves investors with massive gains.
Notably, a golden cross forms when a short-term moving average crosses above the longer-term moving average. This bullish signal often indicates a likely long-term increase in price trend and market strength.
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Cowen says this golden cross should occur in a few days, which suggests that the price trend of Bitcoin could trigger this bullish crossover on the charts. This has been the pattern in previous market cycles.
Despite this optimism, Cowen cautions that short-term pullbacks might occur. In previous scenarios, liquidity has sometimes affected major price shifts, not just technical indicators like the golden cross.
As of press time, Bitcoin was changing hands at $105,175.08, representing a 2.05% increase in the last 24 hours. The coin peaked at $106,814.18 in earlier trading.
However, trading volume dropped 12.89% to $55.69 billion within this time frame. Some holders likely decided to sell off and take a profit at the $106,000 level.
Key price levels: $108K resistance and $100K support
Bitcoin will likely push toward a target of $120,000 if the golden cross confirms a bullish trend and investors do not dump on the market.
The coin must overcome the $106,000 to $108,000 resistance zones to climb. A successful climb above this zone could trigger a breakout.
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If Bitcoin suffers rejection at $108,000 and fails to hit $110,000, this could undo all the previous week’s gains. Bitcoin could then slip toward the $100,000 psychological level.
The price outlook largely depends on market participants’ reaction to rising prices in the coming days. However, a strong Bitcoin advocate, Samson Mow, believes Bitcoin is in an all-time high season.
