Bitcoin's Golden Cross Rally: Analyst Warns of Potential Trap
Bitcoin's recent surge to $81,280 has sparked debate among analysts, with some interpreting it as a sign of a global bull market. However, popular analyst Benjamin Cowen is cautioning against jumping to conclusions.
Cowen notes that Bitcoin price declines during the formation of golden crosses are perfectly normal. This was seen in the first half of September when the asset experienced a local pullback.
The analyst emphasizes that the current rebound to $81,280 divides historical precedents into two opposing camps.
One possibility is the bullish scenario of 2019 and 2023, where Bitcoin managed to recover from the post-cross sell-off, stage a rally, and establish a higher high, ultimately breaking the back of the bear market. To confirm this outcome, a decisive breakout above the psychological resistance zone and weekly candle closes above the 50-week simple moving average (50W SMA) are needed.
On the other hand, if the current recovery runs out of steam and the price faces a firm rejection at current levels, the market will form a lower high. This would be a repeat of the 2014-2015 scenario, where the broader bear market continued.