Bitcoin Ascending Flag Forms as Golden Cross Appears
According to recent technical analysis from Rakuten Wallet and CoinMarketCap, Bitcoin has started showing renewed bullish signs as of September 18, following a short-term correction. The matrix-based method used by Rakuten Wallet upgraded the market characterization from 'autumn rain front stalled' to 'one step away from clear autumn skies.' This indicates that the correction may have run its course.
The descending channel formed during the price action earlier this month has taken on the shape of an ascending flag, a bullish continuation pattern commonly observed during Bitcoin's uptrends. The 9-day moving average turned upward after a death cross on the daily chart, and the weekly chart shows a golden cross between the 9-week and 25-week moving averages, mirroring the pattern that appeared at the 2023 bottom.
Overseas technical analysis from CoinMarketCap points to a similar bullish scenario. An ascending flag has formed atop the large rally that broke through the bear market trendline, and a golden cross between the 50-day simple moving average (SMA) and the 200-day SMA has occurred, a phenomenon typically seen in the early stages of a bull market.
The movement of the 50-week SMA is also noteworthy. Historically, it turns downward after market tops, signaling the start of bear markets. If Bitcoin can move above the 50-week SMA and maintain that level, it could be expected to stay above it for the entire duration of the coming bull market.