Bitcoin has recently formed two golden cross patterns, indicating a potential uptrend from its recent highs. Two well-known analysts, Crypto Rand and Ali Martinez, have provided separate analyses that support the possibility of Bitcoin surging to greater heights.
Crypto Rand’s analysis focuses on a traditional golden cross, which involves the 50-day and 200-day moving averages on Bitcoin’s daily chart. The analyst points out that the 50-day moving average has recently crossed above the 200-day moving average, a pattern that typically precedes a bullish momentum. Crypto Rand refers to a previous golden cross in late 2023, which propelled Bitcoin from $34,000 to an all-time high above $73,000 in March 2024, representing a significant gain of 110% over four months. Based on this precedent, Crypto Rand expects a similar rally to occur, projecting Bitcoin to reach around $148,000 in the coming months. The analyst also provides a timeframe for this potential rally, measuring 137 bars (137 days) from the initial golden cross, which aligns with Bitcoin’s previous cycle. If history repeats itself, Bitcoin could see substantial growth within a similar period, with the target set for early to mid-2025.
On the other hand, Ali Martinez’s analysis focuses on Bitcoin’s Market Value to Realized Value (MVRV) Ratio. This ratio compares Bitcoin’s current price with the average purchase price to determine if the asset is undervalued or overvalued. Martinez’s chart shows the MVRV Ratio crossing above its 365-day simple moving average, a pattern referred to as a golden cross in MVRV terms. This cross typically signals the start of major bull rallies, as it indicates that market participants are accumulating Bitcoin at a faster rate, creating upward pressure on price. Martinez highlights historical data, pointing out that previous MVRV Ratio crosses in 2020, 2021, and 2023 preceded significant price surges of 638%, 69%, and 236%, respectively. With the MVRV Ratio golden cross recently formed, Martinez suggests that Bitcoin may be on the verge of another major rally. Despite reaching a recent peak at $72,000, Martinez assures investors that there is still room for substantial upside.
Market veteran Peter Brandt also believes that Bitcoin has room for growth, predicting a top of $135,000. However, Brandt emphasizes that Bitcoin has not yet recorded a breakout for this second leg up. The upcoming U.S. presidential election could potentially catalyze this breakout. Matthew Sigel, VanEck’s Head of Research for Digital Assets, argues that Bitcoin’s correlation with traditional assets is bullish leading up to the elections.
It’s important to note that this content is informational and should not be considered financial advice. The opinions expressed in this article are the author’s personal opinions and do not reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses.