Bitcoin Golden Cross in Motion – Analyst Suggests Optimal Strategy

The price movement of Bitcoin over the last day has been astonishing. After several days of stabilizing within a narrowing range, it broke through the $105,503 support-turned-resistance earlier this week and initiated a sharp ascent in the last trading session. This surge has propelled Bitcoin to new all-time high territory, and it is displaying no indication of deceleration.

Notably, analysis suggests this surge coincides with an impending golden cross involving the 50 and 200-day moving averages. However, FX_Professor provided an alternative perspective on the well-publicized golden cross.

Analyst Questions Golden Cross Enthusiasm as a Lagging Signal

In a recent report shared on TradingView, FX_Professor offered a novel interpretation of Bitcoin’s golden cross. While many market analysts view this crossover of the 50-day moving average above the 200-day as a definitive bullish signal, this analyst regarded it as an indicator that arrives too late. He likened it to an afterparty where retail investors show up after the event has ended.

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Rather than waiting for the golden cross to signal a buying opportunity, FX_Professor highlighted pre-indicator pressure zones as genuine value indicators. He specifically noted the areas around $74,394 and $79,000 as key accumulation zones and early positions, established well ahead of the visibility of the golden cross. Consequently, by the time the crossover materialized, Bitcoin’s price performance had already experienced substantial growth.

Traders often view the golden cross as a cue to open long positions, as it implies that the asset’s price might continue its upward trajectory. Nevertheless, this perspective reflects a trend among seasoned traders who regard the golden cross more as a lagging confirmation rather than the catalyst for a price rally.

Importance of Early Entry Zones and Structure, According to Analyst

FX_Professor asserts that tools like EMAs or SMAs have utility but should follow a comprehension of price structure, trendlines, and live pressure zones. He shared a glimpse of his Bitcoin pricing chart that merges custom EMAs with a unique parallelogram technique to pinpoint where price pressure starts to escalate. The chart reveals entry points forming as early as April, with Bitcoin rebounding from support near $74,000, long before any crossover confirmation occurred.

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Currently, with Bitcoin advancing toward a target near $113,000, the analyst’s method continues to validate in real-time. However, while the confirmation of a golden cross remains bullish for Bitcoin’s price outlook, the price rally is already well on its way to achieving its peak.

As of this moment, Bitcoin is valued at $110,734. This indicates a slight retreat from the recent all-time record of $111,544, reached just three hours prior. The Bitcoin price has risen by 3.1% in the last day, with potential for new all-time highs before the week’s conclusion.

Featured image from Getty Images, chart data provided.