Bitcoin price action is picking up once again, and the leading cryptocurrency by market capitalization has rebounded sharply back to around $50,000. According to PrimeXBT senior analyst Kim Chua, a Golden Cross is forming in the BTCUSD and has given the bulls enough “firepower” to explode in the $44,000 to $48,000 range.
Chua said the level has since moved to “very strong support base” and that the spot market that is pushing up prices suggests that the upward movement is likely sustainable. If it continues, “rapid parabolic movement” towards $100,000 or more is possible to end the cycle.
The Golden Cross revives Bitcoin bull movement
A surplus of stablecoin inflows and a cash-buying return on the crypto-asset exchanges raised the price of Bitcoin enough to form a “Golden Cross”. A Golden Cross forms when a short-term moving average crosses above a long-term moving average and signals the market that an asset is more than likely bullish and ready to rally for an extended phase.
Previously, Bitcoin formed a Cross of Death, only for the Golden Cross to follow weeks later when the $44,000 to $48,000 resistance was switched from resistance to armored support. With a “strong foundation” built, PrimeXBT analyst Kim Chua believes a new test of the asset’s all-time record is next, and could happen “within a month”.
Parabolic movement can boost Bitcoin to $100,000 or more
If Bitcoin breaks its previous record of about $64,000, Chua says the market will react with “rapid parabolic movement”. The reason for the fast and furious movement is due to market participants who were sidelined, waiting for new lows, being forced back into the bullish FOMO.
When the market realizes that new lows will never happen, the FOMO could spiral out of control and help push cryptocurrency valuations to incredible new heights. The first significant hurdle between the price of Bitcoin and a new test of all-time highs is another resistance zone between $53,000 and $55,000, which Chua says “should be achievable this week”.
If Bitcoin goes beyond that level, Chua believes the cycle will look even more like the 2013 bull market. Should the cryptocurrency “follow a similar trajectory,” Bitcoin could break its current highest record within a month and rise to $100,000 or more.
About Kim Chua, market analyst at PrimeXBT:
Kim Chua is an institutional trading specialist with a successful track record that spans major banks including Deutsche Bank, China Merchants Bank and others. Over time, Chua launched a hedge fund that consistently delivered triple-digit returns for seven years. Chua is also an educator at heart who developed her own trading curriculum to pass her knowledge on to a new generation of analysts. Kim Chua closely follows the traditional and cryptocurrency markets and is eager to find future investment and trading opportunities as the two very different asset classes begin to converge.
