Bitcoin, the leading cryptocurrency, signals bullish momentum as its weekly chart reveals a historic golden cross. This occurrence, marked by the weekly simple moving average (SMA) 50 surpassing the SMA 200, hints at a prolonged bullish trend.
Golden Cross Confirmed
In an unprecedented move, Bitcoin's SMA 50 has broken above the SMA 200 for the first time on record. This confirmation of the golden cross indicates a potential long-term bull market ahead.
From Death Cross to New Highs
Following a 2023 weekly death cross, signaling the bear market's bottom, Bitcoin has seen a remarkable turnaround in 2024. Surging past $49,000, it reaches levels unseen since December 2021, coinciding with the approval of the first spot Bitcoin ETFs by the Securities and Exchange Commission.
Current Market Situation
However, Bitcoin experienced a subsequent decline, currently trading 16% lower than its recent high of over $49,000. This drop followed the initiation of trading for 11 spot exchange-traded funds (ETFs) in the United States last Thursday. As of the latest update, BTC stands at $42,541, reflecting a 0.01% decrease in the past 24 hours.
Anticipating a Significant Event
Post Bitcoin ETF approval, investors prepare for the upcoming Bitcoin halving, a crucial event where mining incentives and revenue for mining businesses are halved, according to the Bitcoin code.
The Impact of Halving
Expected in April, the halving is akin to a market-clearing event for miners. While historically preceding notable Bitcoin gains, benefiting mining stocks, it may also drive unprofitable miners out of the market, paving the way for more sustainable miners to gain market share.
Uncertain Halving Date
Scheduled at block height 840,000, the exact date of the fourth halving remains unknown due to the unpredictable nature of mining blocks. On-chain analytics firm Glassnode estimates, based on the current average block interval, that the halving is approximately 100 days away.
Bitcoin's recent golden cross signifies a potential shift towards a sustained bull market, but the market remains dynamic and influenced by factors like the upcoming halving. Investors should navigate cautiously amid uncertainties.