A golden cross has just been created by Bitcoin, the first and biggest cryptocurrency by market capitalization. The latest sighting occurred early in February.
A golden cross is a type of chart pattern that shows a rising bullish trend when a shorter-term moving average, typically the daily MA 50, crosses over a longer-term moving average, generally the MA 200.
A golden cross indicates that there may be a bull run since short-term price momentum is exceeding long-term price momentum. In just two weeks, the price of bitcoin increased by 30%, breaking above $35,000 for the first time since May 2022.
The largest cryptocurrency by market value, Bitcoin, reached a high of $35,157 on October 27, its highest level in around 18 months, driven by expectations that the U.S. Securities and Exchange Commission will let exchange-traded funds to invest directly in the cryptocurrency.
Even if there was profit-taking the week before, Bitcoin saw a surge over the weekend and may be in the green for the third day. As of this writing, BTC was up 0.59% over the previous day to $34,640 dollars.
As per IntoTheBlock, the MVRV ratio of Bitcoin indicates that even if it has reached annual highs, the cryptocurrency is not as overvalued as it was in prior bull markets.
When compared to the present statistic, historical Bitcoin bull markets have peaked at 300%+ MVRV, suggesting that there is still possibility for greater gains.
Indirect investors are becoming more interested in Bitcoin, according to a recent report by CryptoQuant.
This can be attributed to the Fund Holding index hitting its highest point in the last two months. The total amount of coins owned by trusts and other digital asset-holding entities is measured by this index, which experienced a sharp increase upon learning that the US was likely to approve a Bitcoin ETF.
