The market has already started climbing up.
Bitcoin price is back above $10,000 level after crashing below $9,500 on Monday. The losses that started over the weekend and continued into this week are being turned into gains today.
The digital asset is trading at $10,030 while the volume on the top ten exchanges with real volume remains above a billion-dollar.
The slight pullback, the market saw is already over and the market has started climbing up back again. This uptrend coincides with the long term bullish technical pattern formed by Bitcoin today — golden cross.
“This is considered an extremely bullish chart formation because it indicates that the bottom may be in and the trend is turning from bearish to bullish,” said analyst Mati Greenspan.
The golden cross is a candlestick pattern which is a bullish signal that shows the potential for a major rally. This pattern is formed when the short-term moving average of an asset crosses above its long-term moving average.
Long-term indicators carry more weight and as such golden cross suggests a bull market on the horizon. This signal is further reinforced by high trading volumes and as we have been seeing in 2020 so far, trading volume has been staying strong above $1 billion.
More Gains Ahead
This technical pattern has three stages: the first stage involves the downtrend bottoming out as asset sell-off gets exhausted. In the second stage, in which we currently are, the short moving average moves above the large moving average and triggers a breakout confirming a trend reversal. The last stage sees continuing uptrend that could lead to higher prices.
Interestingly, the last time this crossover happened was last year on April 24th when BTC was at $5,400. From here, the price continued its ascent, going to a yearly high of $13,900 in late June, recording a surge of 157%.
Before this, the golden cross was formed on Oct. 28, 2015. At that time, the price of the digital asset was merely $300. In the next ten days, the bitcoin price climbed to $465 and then moving into next year it climbed above $760 in June 2016.
The good thing is we are back above the important psychological price level of $10,000. With reward halving coming in May 2020, it would be interesting to see when Bitcoin finally breaks into a new all-time high.