Key Takeaways:
A rare bullish signal has appeared on Bitcoin’s price chart for the first time in nearly two years, with the asset’s 50-day moving average crossing above its 200-day moving average. The event, known as a “golden cross,” occurred on May 12 as Bitcoin’s price hovered around $82,500.
"Similar transitions in 2019 and early 2023 signaled renewed bullish momentum and were followed by strong multi-month rallies that evolved into full bull markets," CryptoQuant analyst Dan Moreno said in a recent report on the firm's Bull-Bear Market Cycle Indicator, which has also flashed a bullish signal.
The golden cross is occurring as Bitcoin trades just below its 200-day simple moving average (SMA) of $82,614, a key long-term trend line. As of press time, Bitcoin was trading at $80,866, according to CoinGecko. The asset’s 50-day SMA stands at $74,202, indicating a strengthening short-term uptrend that triggered the cross. The 14-day Relative Strength Index (RSI) is at 65.75, approaching overbought territory but still considered neutral.
The technical signal adds to a growing body of evidence suggesting Bitcoin may be in the early stages of a new bull market. The CryptoQuant indicator turning green has historically marked major shifts in momentum, with analysts now watching to see if the asset can break the psychologically important $100,000 level. While the signal has been reliable, it is not infallible; a brief entry into the bull zone in March 2022 preceded a market decline. However, analysts note the current setup appears stronger, with the indicator climbing steadily alongside price.
This article is for informational purposes only and does not constitute investment advice.
