Bitcoin Golden Cross Fades Amid Rising Interest Rate Hopes

Bitcoin (BTC) recently formed a golden cross pattern on its daily chart, a bullish signal in the market. This technical indicator occurs when the 50-day exponential moving average (EMA) crosses above the 200-day EMA.

The golden cross was short-lived as Bitcoin quickly retreated to $77,438 after reaching a high of $79,837. The pullback coincided with rising expectations of a Fed interest rate hike following the release of US inflation data. The core consumer price index (CPI) rose 0.3% on a monthly basis, exceeding market expectations.

The increase in expected interest rate hikes put selling pressure on risky assets, including Bitcoin. However, technical indicators suggest that the medium-term outlook for Bitcoin has not completely turned negative. On the four-hour chart, the 50-period EMA is still above the 200-period EMA, and the golden cross pattern in this timeframe is maintained.