Bitcoin (BTC) recently demonstrated a combination of signals that traders typically monitor during major uptrends. This week, the leading cryptocurrency displayed a rare “bull run combo” on the chart — a golden cross on the daily time frame, along with a robust bounce off a support level around $95,488.
The golden cross occurred when the 23-day moving average advanced above the 200-day moving average. This pattern is a classic benchmark in technical analysis, signifying a shift in longer-term momentum favoring an upward trend. While this crossover doesn’t guarantee profits, it invariably garners the attention of traders who are momentum-focused and keeping an eye on the overarching trend.
Simultaneously, BTC’s price tested the $95,488 threshold again, a level that has now proven to be solid support. The price briefly dipped into this zone following last week’s rally but managed to hold firm. This suggests that buyers are rallying to secure this range.
As of May 4, Bitcoin is trading just shy of $95,500 mark. While there has been some hesitation around the $96,000 mark in recent trading sessions, the overall trend remains bullish. BTC is trading well above the breakout zone around $94,200, indicating sustained positive momentum.
Additionally, support levels remain in place at $91,000, $90,288, and $89,738. In the event of a further price drop, these could be the next crucial points of focus. These zones could provide some respite during consolidation without jeopardizing the broader perspective.
When these factors are considered collectively, the blend of long-term and short-term strength provides Bitcoin with a robust technical foundation. The current setup is decidedly more bullish than bearish. While it may precipitate a new breakout or more horizontal movement in the near term, it is certainly not a development that can be overlooked.
This blend of technical signals is a testament to Bitcoin’s resilience and continuing appeal to traders. Whether one is a long-term investor or a short-term trader, these signs offer valuable insights into Bitcoin’s potential future movements. As always, however, it’s crucial to bear in mind that cryptocurrency investments carry inherent risks and should be approached with caution and due diligence.
