The largest cryptocurrency by market capitalization may be on its way to forming a new bullish cross on its weekly chart.
According to the data, the weekly 50 SMA was at $28,102 and rising as of press time, while the weekly SMA was at $29,301.
Since mid-October, Bitcoin has risen for seven consecutive weeks and has surpassed the $42,000 level. If this week ends on a positive note, it will be Bitcoin’s eighth consecutive week of gains.
Crypto-specific factors have contributed to bitcoin’s stellar 152% rise in 2023, with BTC hitting new annual highs of $42,410 in Monday’s trading session.
A golden cross, which occurs when the 50 SMA crosses above the 200 SMA, indicates that short-term price momentum is outpacing long-term price momentum, potentially leading to a bull run. Based on this indicator, bitcoin’s weekly chart may develop in the coming weeks.
Looking at past precedents, in the weeks following the September 2021 golden cross, bitcoin rose to a new high of $69,000. The upcoming golden cross may live up to its storied past, given the optimism surrounding the likely launch of a U.S.-based spot ETF.
What’s next for the bitcoin price?
Bitcoin was hovering near $42,000 at the time of writing, up 0.15% at $41,866, after breaching this key level on Monday.
Meanwhile, the euphoria surrounding bitcoin’s breakout above $42,000 continues to trend across crypto platforms, according to Santiment.
However, some technical indicators, such as the RSI, a momentum indicator, may suggest that bitcoin’s rally is overstretched.
According to Santiment, bitcoin’s RSI suggests a brief cooldown for the BTC price after it crosses $42,000. If this happens, and the RSI remains at 65, bitcoin may target $50,000 more quickly.
Ali, a crypto analyst, notes that the main resistance area for BTC is at $47,360, while $37,000 has now become a significant support area.
