While a long-term chart indicator has just made a bullish call, bitcoin (BTC) is struggling to gather upside traction and looks vulnerable near the seven-week rising trendline support. In what was possibly going to gift bitcoin prices a lift, the 50-day moving average (MA) has crossed above the 200-day MA, confirming a golden crossover, a long-term bull market indicator.
The development has the crypto-market community excited because the same pattern saw bitcoin rally from $5,050 to $8,300 in the three weeks to May 16, 2019, following confirmation of the golden cross in late April. “Don’t be late to the party,” popular research analyst and blockchain enthusiast @crypto_blkbeard tweeted early on Tuesday, while drawing attention to the golden cross on the daily chart.
Meanwhile, @themooncarl informed his 21,000 Twitter followers the golden cross is a sign momentum has shifted in favor of the bulls. So far, however, the buoyant mood surrounding the cross event has not translated into keener buying. That’s evident from bitcoin’s failure to keep gains above $9,800 during the early European trading hours and the subsequent drop to levels below $9,700 – the support of the trendline rising from Jan. 3 and Jan. 26 lows.