Bitcoin Approaches Golden Cross as Price Holds Above Key Support, Eyeing Potential Move Toward $120K

• Bitcoin’s 23-period and 200-period moving averages are set to cross, signaling strengthening bullish momentum.

• BTC surged from $116,600 to $118,600, breaking a week-long resistance zone.

• Support is forming near $116,400, which could provide a base for upward moves.

Bitcoin’s 4-hour chart indicates a potential golden cross, suggesting bullish momentum and targeting $119K-$120K. Stay updated with COINOTAG.

What is a Golden Cross in Bitcoin Trading?

A golden cross occurs when a short-term moving average crosses above a long-term moving average, indicating potential bullish momentum. Currently, Bitcoin’s 23-period moving average is approaching the 200-period moving average, suggesting a strong buying signal.

How Does Bitcoin’s Price Action Support This Signal?

Bitcoin’s recent price action shows it breaking through significant resistance levels, climbing from $116,600 to nearly $118,600. This upward movement indicates that buying pressure is increasing, aligning with the golden cross setup.

Frequently Asked Questions

What is the significance of Bitcoin holding above $117,500?

Holding above $117,500 is crucial as it indicates strength in the market, allowing for potential upward movement towards $119,000 and $120,000.

How can traders benefit from the golden cross pattern?

Traders can benefit by entering positions when the golden cross occurs, as it often leads to increased buying momentum and higher price levels.

Key Takeaways

• Golden Cross: Indicates potential bullish momentum in Bitcoin.
• Price Levels: Key resistance levels are at $119,000 and $120,000.
• Support Zone: $116,400 may provide a cushion during pullbacks.

Conclusion

Bitcoin’s 4-hour chart is signaling a potential golden cross, which could lead to significant price movements towards $119,000 and $120,000. Traders should monitor key support levels to capitalize on this bullish trend.

Bitcoin’s 4-hour chart signals a rare golden cross as price stays above key support, aiming for $119K–$120K in the coming days.

• Bitcoin’s 23-period and 200-period moving averages on the 4-hour chart are on track to cross, signaling strengthening bullish momentum.

• BTC recently surged from $116,600 to $118,600, breaking a week-long resistance zone and holding above the $117,500–$118,000 range.

• Support is forming near $116,400, which could offer a strong base for renewed upward moves if prices briefly retrace during low weekend liquidity.

Bitcoin is on the verge of a notable technical event on its 4-hour chart. The short-term 23-period moving average has been steadily rising toward the longer-term 200-period moving average. This convergence, known as a golden cross, is set to occur within the next few trading candles.

Over recent days, the narrowing gap between the two averages has drawn attention from market watchers. This pattern is often interpreted as a sign that buying momentum is beginning to outweigh selling pressure. On Friday, Bitcoin’s price climbed sharply from about $116,600 to nearly $118,600, breaking through a resistance level that had held for much of the week.

Price Holds Above Key Range

As of this weekend, Bitcoin is holding above the $117,500 to $118,000 range. Maintaining this position could lead to the moving averages crossing early in the week. If that occurs, the market may attempt to test the $119,000 and $120,000 levels. These price points represent the last significant barriers before approaching all-time highs.

Source: TradingView

There is also a developing support area close to $116,400, where the two moving averages are set to meet. This zone could act as a cushion in the event of a short-term pullback. With lower liquidity often seen during weekends, price movements can become sharper, increasing the likelihood of quick rebounds from support levels.

The coming sessions will indicate whether the market has the momentum to turn this setup into a broader upward trend. Traders will be watching closely to see if Bitcoin can sustain its position above key support and challenge higher resistance levels as the new week begins.