Bitcoin's chart patterns are showing similarities to those observed before the late 2024 rally, which saw prices surge from $70,000 to $109,000. The potential formation of a golden cross in the coming weeks could indicate a bullish trend, mirroring patterns seen in the previous year.
The weekly chart's Moving Average Convergence Divergence (MACD) histogram, a momentum indicator, initially displayed a bearish crossover in mid-February. However, Bitcoin found support at the 50-week simple moving average (SMA) in March and rebounded above $90,000, echoing the August-September pattern where prices maintained SMA support despite bearish MACD signals.
Four weeks prior, the 50- and 200-day SMAs formed a bearish death cross, but Bitcoin found support around $75,000 and reversed course. The 50-day SMA is currently ascending and may soon cross above the 200-day SMA, establishing a bullish golden cross. This mirrors trends from the past year, where a death cross in August marked a bottom, succeeded by a golden cross that triggered a rally beyond $109,000. Bullish momentum could potentially propel Bitcoin past its January high of $109,000.
While chart patterns offer insights into potential movements, macroeconomic factors can swiftly alter market trajectories. Therefore, it's important to acknowledge that chart analysis is not definitive.
Some analysts predict that Bitcoin could reach between $120,000 and $200,000 by the end of 2025, depending on market sentiment and macroeconomic factors. Institutions like Standard Chartered and Cathie Wood's ARK Invest suggest that strong ETF inflows and a tightening supply could drive the price surge.