Bitcoin Approaches Its First Golden Cross for 2024

Coinspeaker
Bitcoin Approaches Its First Golden Cross for 2024

Several technical indicators suggest to analysts that Bitcoin (BTC) is nearing hitting a major golden cross trend. The resulting crossover is often considered a bullish signal whenever the 50-day moving average (MA) exceeds the 200-day MA. The industry last saw such a crucial move in October 2023, eventually marking the upsurge in the early bull run phase.

Should this golden cross trend play out as speculated, it would mark the first time this year. Market analyst and founder of Crown Analysis, Tom Crown, highlighted the new development on X. He attached a chart that displayed Bitcoin’s daily price action alongside its 50-day (yellow line) and 200-day (green line) MAs.

#Bitcoin Golden Cross INCOMING
Watch for a local top in price on the day of cross pic.twitter.com/c3nCiD8WjD

— Tom Crown (@TomCrownCrypto) August 26, 2024

It is quite clear that Bitcoin has made a comeback, especially after falling below $50,000 in the first week of August.

The flagship coin has displayed intense resilience in the last few weeks. For the most significant part of this month, Bitcoin’s price has consistently remained below its 50-day- and 200-day MAs. However, this changed over the weekend.

The price of Bitcoin soared by approximately 6.13% during this time and ended up breaching both averages. At the time of writing, data from CoinMarketCap shows Bitcoin is trading at $63,571.58 after dipping by 0.25% in 24 hours. Still, the coin remains above the 50-day MA at $61,927 and the 200-day MA at $63,418. This is a strong sign of a bullish trend.

Experts have also noticed that the 50-day MA spikes faster than the 200-day MA, partly fueling the optimism of an impending crossover. In addition to this outlook, Bitcoin’s near-term momentum must play a part. The reality of a golden cross is also hinged on Bitcoin’s near-term momentum accelerating, further pushing the 50-day MA upward.

This is a crucial state, considering that any failure to sustain this upward momentum would result in both a rejection and a bearish reversal.

It is worth noting that spot Bitcoin ETF inflows could also catalyze Bitcoin price growth. According to SoSoValue data, the trading volumes for the eleven ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, crossed $3.12 billion, marking their highest level since July 19. Their net inflows summed up to $252 million.

As is the trend, IBIT led the group with trading activity and inflows of $1.2 billion and $83 million, respectively. Fidelity’s FBTC followed BlackRock with $64 million in inflows, while Bitwise’s BITB took in $42 million, which helped it cross the $2 billion Assets Under Management (AUM) mark for the first time. On the other hand, Grayscale’s GBTC ended up as the only product with net outflows of $35 million.

The increasing adoption of the products amongst institutional investors contributes to this outlook.

Bitcoin Approaches Its First Golden Cross for 2024