Golden Cross Sparks Hope, But $84,400 Break Key to Sustained Gains

Bitcoin (BTC) has formed its 13th Golden Cross, where the 50-day Simple Moving Average (SMA) crossed above the 200-day SMA. This technical indicator is often seen as a bullish signal, but past price movements have shown variability.

The recent formation on September 8 followed a rebound from the $65,000 range in late August to a temporary high of $82,000. Currently, Bitcoin is trading around $79,000.

Of the previous 12 Golden Cross instances, three led to significant gains with an average increase of over 250% in the 12 months following the formation. The remaining nine saw an average gain of 24.9% in the three months following the formation.

The key focus is whether Bitcoin can break through the $84,400 resistance level on a daily closing basis while maintaining downside support. If it fails to do so, there is a possibility that upward momentum will weaken or the signal will turn out to be a 'bull trap'.