Bitcoin Tops Resistance at $51K as Golden Cross Nears

Bitcoin eyes first golden cross since May 2020

Sep 6, 2021 at 10:28 a.m. UTC

Omkar Godbole is the senior reporter on CoinDesk's Markets team.

Bitcoin looks set to continue to rise after clearing a key resistance level, with charts hinting at a so-called golden crossover, a long-term bullish indicator.

On Sunday, the biggest cryptocurrency printed a UTC close well above $51,109, marking an upside break of the 61.8% Fibonacci retracement of the April-to-June sell-off.

The breakout could bring additional demand because chart traders often use Fibonacci ratios such as 61.8%, 38.2%, and 23.6% to identify support, resistance and trading opportunities.

CoinDesk - Unknown

Bitcoin's daily chart

Last week also saw bitcoin break above other crucial hurdles at $48,644 and $49,105, Stack Funds’ Head of Research Lennard Neo said, adding that the move looks sustainable. “The fact that BTC is trading above the 200-day MA gives further confidence that these critical levels are resistances turned support,” Neo said, referring to the moving average.

“More interestingly, we have observed five out of six days of continuous bid momentum that outshine the offers. This further support the upside thesis for the digital asset, at least in the near term,” he said.

Bitcoin consolidated above the 200-day MA in the past two weeks, building a base for Sunday’s move above $50,000.

While the 200-day MA is steady near $46,100 at press time, the 50-day MA is trending north and looks set to cross above the former in the next few days. That would confirm a golden crossover, which occurs when the short-term average moves above the long-term measure.

CoinDesk - Unknown

Bitcoin's daily chart

Trend-following traders consider the golden cross as a buy signal and may hit the market with fresh bids. The previous instance of the golden cross, in May 2020, was followed by an 11-month climb that saw prices rise from $9,000 to over $60,000. It’s not, however, a perfect indicator, having trapped traders on the wrong side of the market in February 2020 and July 2014.

Still, the latest golden cross is backed by bullish on-chain data showing renewed accumulation by large investors and a declining bitcoin balance on exchanges. Bitcoin is currently trading largely unchanged on the day near $51,800.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Omkar Godbole is the senior reporter on CoinDesk's Markets team.

CoinDesk - Unknown

Omkar Godbole is the senior reporter on CoinDesk's Markets team.

Trending

1
CoinDesk - Unknown
After Armstrong Tweet, India's Crypto Policy Body Says No Contempt of Court Challenge vs. RBI

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

CoinDesk - Unknown
2
CoinDesk - Unknown
Portuguese Congress Rejects Two Bills Seeking to Tax Crypto

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Asia: Regulatory Attention on Terra Could Change South Korean Trading Environment; Bitcoin Goes Sideways

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

CoinDesk - Unknown
4
CoinDesk - Unknown
A16z Doubles Down on Crypto Investments Despite Market Downturn, and NFL Launches Play-to-Earn NFT Game

The most valuable crypto stories for Wednesday, May 25, 2022.

The most valuable crypto stories for Wednesday, May 25, 2022.

CoinDesk - Unknown