Bitcoin breaks resistance at $ 51,000 as the golden cross approaches

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Bitcoin is expected to continue rising after breaking through a key resistance level, with charts hinting at a so-called golden cross, a long-term bullish indicator.

On Sunday, the largest cryptocurrency printed a UTC close well above $ 51,109, marking an upward breakout of the 61.8% Fibonacci retracement of the April to June sell-off.

The breakout could bring additional demand as chart traders often use Fibonacci ratios such as 61.8%, 38.2% and 23.6% to identify support, resistance and trading opportunities.

Bitcoin Turns 61.8% Fib Resistance Into Support

Bitcoin also broke other crucial hurdles last week at $ 48,644 and $ 49,105, said Lennard Neo, research director of Stack Funds, adding that the move appears to be sustainable. “The fact that BTC is trading above the 200 day MA gives additional confidence that these critical levels are resistance turned support,” said Neo, referring to the moving average.

“More interestingly, we have seen five out of six days of continued momentum with offers outperforming offers. This further supports the bullish thesis for the digital asset, at least in the short term, ”he said.

Bitcoin has consolidated above the 200-day MA over the past two weeks, setting a base for Sunday’s move above $ 50,000.

While the 200-day MA is stable near $ 46,100 at the time of publication, the 50-day MA is heading north and is expected to overtake the former in the coming days. This would confirm a cross in gold, which occurs when the short-term average crosses above the long-term measure.

Bitcoin’s golden cross

Trendy traders see the golden cross as a buy signal and may come into the market with new offers. The previous instance of the Golden Cross, in May 2020, was followed by an 11-month surge that saw prices rise from $ 9,000 to over $ 60,000. This is not a perfect indicator, however, having trapped traders on the wrong side of the market in February 2020 and July 2014.

Yet the latest golden cross is supported by on-chain bullish data showing renewed accumulation by large investors and a declining bitcoin balance on the exchanges. Bitcoin is currently trading largely unchanged on this day, near $ 51,800.

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