Bitcoin Experiences Its First Ever Weekly ‘Golden Cross,’ Indicating a Bullish Trend to Investors

For the first time ever, Bitcoin’s 50-week simple moving average has crossed above the 200-week simple moving average, confirming what technical analysts call the “golden cross.” Many traders see this development as a sign that Bitcoin may enter a long-term bull market. However, others note that moving averages reflect past price action and may lag behind current trends.

Following four months of strong price increases that saw Bitcoin values jump over 70% to reach $42,700, the Golden Cross has now shown up on the weekly chart. Yet because this signal is based on past price data, some feel it does not necessarily predict future price direction. Instead, moving average crossovers are generally viewed as confirmation of trends already in motion rather than a leading indicator. For example, the “death cross” seen in 2023 coincided with the bottom of the recent bear market.

ETF Launches Fail to Sustain New Highs

After registering new highs around $49,000 immediately after the launch of several Bitcoin spot ETFs on U.S. exchanges last week, Bitcoin’s price rise has since stalled. The cryptocurrency is currently trading around 10% lower from those highs reached in the euphoria following the ETF debuts. According to analysts, the bullish momentum has eased as ETF inflows did not meet the unrealistically high expectations built into the market. While ETF fund flows total nearly $1 billion, including initial seed investments, the price impact has been short-lived.

Credibility of Golden Cross Signal Still Unclear

Whether the golden cross in the weekly Bitcoin chart foreshadows a long-term bull market remains to be seen. For the signal to gain credibility with more traders, Bitcoin may need to sustain its price gains going forward rather than witness the current pullback. Increased institutional participation through investment vehicles like ETFs could help support prices if flows continue steadily. However, if ETF buys taper while selling pressure rises, the golden cross may be only a temporary bullish blip rather than a transformative trend shift.