It is often said that technical analysis works 100% of the time, backwards. Some swear by it and some consider it to hold as much truth as horoscopes. This week Bitcoin has passed a major milestone that many believe heralds the end of crypto winter and bring with it a new all time high.
Over the last month Bitcoin has risen by over $1700 to $5600, a gain of around 40%. This is the first time since the October 2015 that Bitcoin has achieved what is known as the “golden cross”.
The golden cross is when the 50 day moving average passes the 200 day moving average. It is seen by many traders a sign that the Bitcoin has switched from a bear to a bull market.
“The stars are aligning for a bitcoin bull run,” Simon Peters, an analyst at online trading platform eToro, stated:
“The short-term moving average for the price of bitcoin has finally moved above the longer-term average, which is often referred to as a golden cross, so investors are starting to believe that we might just be approaching a new phase for the price of bitcoin.”
Market analysts now see $6000 as the next major price point where Bitcoin will test resistance.
In a first for Bitcoin it also passed another major milestone by passing the psychologically important 400 million transactions.
Not all are convinced and some believe that Bitcoin will test $3,000 again before it tests its all time highs.