Bitcoin’s rally pauses just before first 2023 Golden Cross
Last Updated on 6 November 2023 by CryptoTips.eu
Bitcoin’s fantastic January rally (when it rose some 40%) has been paused for a few days. Analysts claim that both the fantastic US jobs report from last Friday and profit-taking are to blame. A brief overview.
As we reported last Friday, Bitcoin was on its way to a so-called Golden cross, a point where the short-term outlook and the long-term outlook both turn bullish. The last time a similar signal was seen was when the largest digital coin set records.
Bitcoin rose 22% in two months after a golden cross
Most instances of a golden cross have resulted in favorable returns for Bitcoin, and many have occurred at critical long-term inflection points.
Sean Farrell, Fundstrat Global Advisors’ digital-asset strategy head, explained
#btc
— Honey (@honey_xbt) February 6, 2023
golden cross about to happen on #Bitcoin pic.twitter.com/7ByUgtrh1V
Over the past five years, Bitcoin rose by an average of 22% in the 60 days following a golden cross. But the striking difference between the easy-money era of 2020 and 2021, when golden crosses in the cryptosphere tended to precede rallies to record highs, and the current backdrop is that central banks are raising interest rates to fight inflation.
Another novelty is last week’s very strong US jobs report. Since this means that the Fed can still raise rates without really hurting the economy, analysts interpret this as a signal that it is not yet 100ù certain that the Fed will indeed stop raising rates any time soon.
So investors don’t know what to do next. And it’s clear Bitcoin doesn’t either.
