On its weekly chart, Bitcoin (BTC), the biggest cryptocurrency by market value, has reaffirmed a positive signal.
For the first time ever, Bitcoin’s weekly simple moving average (SMA) 50 has crossed above the weekly SMA 200, validating the bullish golden cross and pointing to a future long-term bull market.
In 2023, there was a weekly death cross for bitcoin, which signalled the end of the bear market. In 2024, Bitcoin has risen beyond $49,000, hitting highs not seen since December 2021, shortly after the Securities and Exchange Commission authorised the country’s first spot Bitcoin exchange-traded funds (ETFs).
As many traders had anticipated, Bitcoin then declined. As of right now, it is trading 16% below its previous peak of almost $49,000, which was reached following the opening of trading for 11 spot exchange-traded funds (ETFs) in the US last Thursday.
As of this writing, BTC was trading at $42,541, down 0.01% from the previous day.
Massive bullish event nears
According to the Bitcoin code, investors appear to be preparing for the impending Bitcoin halving, which will cut in half the mining incentive for Bitcoin as well as the revenue of the mining companies. This is in anticipation of the adoption of the Bitcoin ETF.
The halving, which is scheduled for April, is comparable to a miners’ market clearing event. As mining stocks have profited from substantial increases in Bitcoin historically, this event has the potential to push unprofitable miners out of the market and give more sustainable miners a chance to gain market dominance.
The fourth halving is slated to occur at block height 840,000, however because mining blocks are probabilistic and naturally variable, it is impossible to pinpoint the precise date.
According to on-chain analytics company Glassnode, the halving is currently 100 days away based on its best estimate and the current average block interval.
