Bitcoin Strengthens as Second Golden Cross Boosts Bullish Outlook
Bitcoin kicked off the week with a bullish tone, trading around $86,100 on Monday, up 1.14% in 24 hours. Despite this, the cryptocurrency is still struggling to break through its recent high of $87,354. The broader crypto market capitalization stands at $2.94 trillion, with the Fear & Greed Index at 68, indicating stable sentiment.
Macroeconomic conditions have shifted in Bitcoin's favor. The U.S. jobs report for September revealed a weaker-than-expected labor market, with only 29,000 jobs added and the unemployment rate ticking up to 4.2%. This data, along with revisions to previous months' reports, has reduced the likelihood of an October interest rate hike by the Federal Reserve. Stock markets also reacted positively, with the S&P 500, Nasdaq, and Dow all showing gains.
On the technical side, Bitcoin's daily chart has painted a strong bullish picture. The cryptocurrency has entered a second, more robust '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 in mid-September. These crosses suggest that Bitcoin's short-term and medium-term trends are both aligned above the long-term trend, reinforcing the bullish outlook.
Looking ahead, several key economic events could influence Bitcoin's trajectory. The Federal Reserve will release the minutes of its September meeting on October 7, and the September Consumer Price Index (CPI) report is due on October 14. The Fed's next policy meeting is scheduled for October 27-28, with a press conference following on October 28.