- Bitcoin closed above the $ 7-400-7,500 resistance on Thursday, confirming its likelihood of extending its high to $ 8,000.
- The formation of a super predictive pattern of the Golden Cross suggests that a price hike on the positive side is imminent.
- The only problem is a rising wedge pattern that can bring its price below $ 5,500.
Finally, bitcoin was able to break above the price ceiling this prevented him from chasing a more significant bull run.
The benchmark cryptocurrency jumped above $ 7,500 on Thursday in a surprising buying action that raised prices by $ 704 in just three hours. It reached $ 7,775 at Coinbase before correcting during Friday’s Asian trading session.
Cryptography was able to navigate the strong resistance labeled in the chart seen above. However, the intermediate price rally has stopped for a while, indicating that traders are expecting a bullish continuation before buying bitcoin on local tops. This can lead to a sharp drop in disadvantage.
A better stained golden cross
As bitcoin aims to confirm a prolonged run, the cryptocurrency also painted a historically accurate and super predictive Golden Cross.
The bullish indicator is formed when the short-term moving average of an asset closes above the long-term moving average. Bitcoin traders typically watch the 50- and 200-day MA curves to confirm a Golden Cross – or conversely, the low Death Cross. But these metrics have so far proved to be behind schedule.
In retrospect, the daily bitcoin chart forms a gold cross almost a month after prices rise. Likewise, the cryptocurrency falls long before painting a pattern of the Cross of Death. This prevents traders from finding intermediary profitable opportunities.
However, replacing the simple 200-day moving average with a 20-day exponential moving average improves the predictive quality, as shown in the graph below by means of red circles.
The 20-50 MA combo instantly predicts the next potential bitcoin moves. On Friday, the 20-day EMA is above the 50-day SMA, suggesting that the BTCUSD exchange rate is looking to rise. A similar formation earlier this year raised the pair by more than 40%.
So, in the current scenario, the bitcoin price could rise to as much as $ 10,000.
Growing wedge of Bitcoin
On the other hand, bitcoin is still trending higher within a Rising Wedge pattern, as confirmed by two converging trend lines. The cryptocurrency may continue to rise until it reaches the peak of the form. After that, it could fall to the height of the wedge, taking it below the $ 5,000 level.