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Bitcoin Forms a "Golden Cross" Pattern When Price Hits $7,500

Bitcoin bounced off the $7400-7500 resistance area on Thursday, with a high probability of a rally to $8000

The formation of the Golden Cross pattern predicts an imminent growth.Bitcoin has finally broken out of the ceiling that is holding back the price of the currency to enter a bull market.

The coin's value surged past $7,500 on Thursday thanks to a sudden buying move that sent the price up over $704 in just 3 hours. Prices peaked at $7,775 on Coinbase before falling lower in early Asian trading on Friday.

BTC was able to enter a resistance area on the chart. However, the upside movement is faltering, showing traders' anticipation for a continuation of the bull market before continuing to buy at regional tops. This could lead to a deeper drop to a lower price range.


Formation of the Golden Cross pattern

Bitcoin is expected to continue to increase in price, at the same time forming a Golden Cross pattern - a price model that can provide highly accurate predictions.

This bullish indicative pattern is formed when an asset's short-term moving average ends above its long-term moving average. Bitcoin traders often watch the changes of the 50 or 200-day moving average to confirm the formation of a Golden Cross pattern, or its opposite - the Death Cross. But these indicators are gradually showing problems.

Prior to that, Bitcoin's daily price chart showed a Golden Cross almost a month after the price started to rise. Similarly, the coin's value has also decreased somewhat before the formation of the Death Cross. Therefore, traders on the primexbt exchange still only dare to look for temporary profit opportunities.

But when replacing the 200-day simple moving average (SMA) with the 20-day exponential moving average (EMA), the predictive performance improves, as shown in the chart below at the points circled in red.

The set of 20-50 moving averages will soon predict the next moves of the Bitcoin price. As on Friday, the 20-day EMA is above the 50-day SMA, suggesting that the value of the BTC/USD pair is likely to rise. The same price pattern encountered during the year also pushed the ratio of the trading pair up to 40%.

Therefore, with the current situation, the price of Bitcoin can increase to $1000.

See more: NFL Star Russell Okung Backs Startup With Bitcoin Rewards

Bitcoin Upward Wedge Pattern

However, Bitcoin is still growing inside a Rising Wedge, made up of two converging trendlines. The coin value can still increase until the top of the pattern is reached. After that, the price can drop deeply along the height of the “Wedge”, down to the price zone below the $5000 level.

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