Key Points
- Bitcoin (BTC) is nearing a major “golden cross” trend, an often bullish signal.
- Bitcoin’s resilience and ETF inflows could potentially drive the price up.
Bitcoin (BTC) is approaching a significant “golden cross” trend, according to several technical indicators. This trend is often seen as a bullish signal when the 50-day moving average (MA) surpasses the 200-day MA. The last time this crucial trend occurred was in October 2023, which marked the beginning of an early bull run phase.
If this golden cross trend plays out as predicted, it would be the first of its kind this year. Tom Crown, a market analyst and founder of Crown Analysis, highlighted this development. He provided a chart showing Bitcoin’s daily price action along with its 50-day and 200-day MAs.
Bitcoin’s Resilience Following Price Dip
Bitcoin has bounced back, particularly after falling below $50,000 in the first week of August. The leading cryptocurrency has shown significant resilience in recent weeks. For most of this month, Bitcoin’s price has consistently stayed below its 50-day and 200-day MAs. However, this changed over the weekend.
Bitcoin’s price surged by approximately 6.13% during this period, breaching both averages. According to CoinMarketCap data, Bitcoin is currently trading at $63,571.58, after a 0.25% dip in 24 hours. Nevertheless, the coin remains above the 50-day MA at $61,927 and the 200-day MA at $63,418, indicating a bullish trend.
Experts have observed that the 50-day MA spikes faster than the 200-day MA, adding to the optimism of an impending crossover. However, Bitcoin’s near-term momentum must also contribute. The possibility of a golden cross largely depends on Bitcoin’s near-term momentum accelerating, pushing the 50-day MA upward further.
ETF Inflows Could Boost Bitcoin Price
Spot Bitcoin ETF inflows could also stimulate Bitcoin price growth. According to SoSoValue data, the trading volumes for the eleven ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, surpassed $3.12 billion, marking their highest level since July 19. Their net inflows amounted to $252 million.
IBIT led the group with trading activity and inflows of $1.2 billion and $83 million, respectively. Fidelity’s FBTC followed BlackRock with $64 million in inflows, while Bitwise’s BITB received $42 million, helping it surpass the $2 billion Assets Under Management (AUM) mark for the first time. Conversely, Grayscale’s GBTC was the only product with net outflows of $35 million.
The growing adoption of these products among institutional investors contributes to this outlook.
