Bitcoin Confirms Strong Bullish Signal with Second Golden Cross
Bitcoin started the week with a bullish tone, trading around $86,100 on Monday, though it remains below the key resistance level of $87,354. The cryptocurrency's market capitalization stands at $1.73 trillion, contributing to a total crypto market cap of $2.94 trillion. The Fear & Greed Index is at 68, indicating a 'greed' sentiment, which has stabilized after a recent dip from 'extreme greed' levels.
The latest jobs report from the U.S. showed a significant slowdown in hiring, with only 29,000 jobs added in September, a third of what economists expected. This weak data, combined with revisions showing job losses in previous months, has reduced the likelihood of further interest rate hikes by the Federal Reserve. The Fed had raised rates to 3.75%-4.00% in mid-September, but the odds of an October hike have since dropped to around 16%-22%.
Bitcoin's daily chart shows a strong bullish signal with the formation of a second golden cross, where the 100-day exponential moving average (EMA) has crossed above the 200-day EMA. This follows an earlier golden cross involving the 50-day and 200-day EMAs, indicating a robust medium-term trend. The Relative Strength Index (RSI) is at 64.7, suggesting strong momentum without being overbought, while the Average Directional Index (ADI) is at 43.4, indicating a strong trend.
Looking ahead, key events include the release of the Federal Reserve's September meeting minutes on October 7 and the September Consumer Price Index (CPI) report on October 14. The next Fed policy meeting is scheduled for October 27-28, with a press conference following on October 28. Meanwhile, U.S. spot bitcoin ETFs continue to see inflows, with $189.84 million in net inflows on the latest daily reading, bringing total net assets to $101.1 billion.