Bitcoin, the original cryptocurrency and largest crypto by market cap, has been making significant moves in the market recently. Analysts are predicting parabolic moves ahead as the digital currency forms a golden cross pattern and continues its strong rebound.
The price of Bitcoin has risen for three consecutive days, reaching its highest level since July 29. It has retested the psychological level of $68,000, marking a nearly 40% jump from its lowest level in August. There are increasing odds that Bitcoin will continue climbing, with the crypto fear and greed index moving from 37 to 58, indicating a sense of greed in the market that often leads to rallies in Bitcoin and other cryptocurrencies.
One of the key indicators of Bitcoin’s potential for further growth is the formation of a golden cross pattern, where the 50-day and 200-day Weighted Moving Averages have made a bullish crossover. The last time this crossover occurred was in October of the previous year, leading to a 120% surge in the coin’s price to its all-time high of $73,800 in March. The Weighted Moving Average is considered a more reliable indicator than simple or exponential moving averages as it gives more weight to recent price movements.
In addition to the golden cross pattern, Bitcoin has also formed an inverse head and shoulders pattern and surpassed the important resistance point at $66,561. It has crossed the descending trendline that connects the highest swings since March, further indicating a bullish trend in the market.
The rise in Bitcoin’s price can be attributed to several factors, including the increasing odds of Donald Trump winning the election, with Polymarket placing his probability at 60%. Trump is viewed favorably by the crypto industry due to his strong endorsement of the sector and his ownership of a crypto portfolio worth over $6 million. He has also launched World Liberty Financial, a crypto project.
Furthermore, analysts are optimistic about Bitcoin’s future prospects. Popular trader Peter Brandt predicts that Bitcoin has more upside potential, with an initial target of $73,800. Other analysts, such as Miles Deutscher and Michael van de Poppe, also foresee significant growth in the digital currency, with expectations of a larger breakout and more upside in the long term as the Federal Reserve cuts interest rates.
Overall, the outlook for Bitcoin appears positive as it continues to make significant moves in the market, with analysts predicting parabolic moves ahead. Investors and traders will be closely watching the digital currency’s performance in the coming days and weeks as it seeks to reach new highs.