Bitcoin is on the brink of experiencing an exponential moving average (EMA) golden cross for the first time since April 2019.
The previous cross, which saw the daily 50 EMA move above the daily 200 EMA, preceded a 175% rally to the upside in the following two months as hype surrounding Facebook’s proposed cryptocurrency Libra spread across the entire market.
The same moving averages crossed back to the downside in November, which resulted in a subsequent 25% drawdown to as low as $6,400.
However, since then, Bitcoin has started to regain some bullish momentum and has lifted itself above the key $9,000 level of resistance.
The next key hurdle for Bitcoin to clear if the golden cross is to come to fruition is the psychological $10,000 level of resistance.
A clear breakout above that level on significant volume would be the first indication that Bitcoin is in a bullish posture, with suggestions that it could surge past $14,000 before May’s halving event.
The halving event will see Bitcoin miner rewards slashed from 12.5 BTC per block to 6.25 BTC per block.
This has historically caused the price of Bitcoin to rise dramatically as miners are incentivised to drive the price to the upside in order for the industry to remain profitable.
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