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Bitcoin has formed two golden cross patterns amid the recovery push, with analysts projecting further uptrend from recent highs.
Two prominent market analysts, Crypto Rand and Ali Martinez, recently discussed Bitcoin’s potential to surge to greater heights through two separate yet converging analyses.
Bitcoin Forms Traditional Golden Cross
Crypto Rand’s analysis focuses on a traditional golden cross involving the 50-day and 200-day moving averages (MAs) on Bitcoin’s daily chart. In his chart, the 50-day MA recently crossed above the 200-day MA—a pattern that usually precedes bullish momentum.
The analyst confirmed that the previous golden cross for Bitcoin, which occurred in late 2023, propelled the firstborn crypto asset from $34,000 to the ATH above $73K in March 2024, marking a robust 110% gain over four months.
Crypto Rand believes this movement sets precedent that Bitcoin could follow in subsequent structure. Notably, the golden cross recently materialized again. Now, the analyst anticipates a similar rally, projecting Bitcoin to reach around $148,000 in the coming months.
The chart also outlines a timeframe for this potential rally. Crypto Rand measures 137 bars (137 days) from the initial golden cross, in sync with Bitcoin’s previous cycle. If history repeats, Bitcoin’s price could make strides within a similar period, with the target set at early to mid-2025.
BTC Forms MVRV Ratio Golden Cross
Meanwhile, Ali Martinez made a complementary analysis but focused on Bitcoin’s Market Value to Realized Value (MVRV) Ratio. The ratio compares Bitcoin’s current price with the average purchase price to check if the asset is undervalued or overvalued.
Martinez’s chart shows Bitcoin’s MVRV Ratio crossing above its 365-day simple moving average (SMA). Analysts regard this pattern as a golden cross in MVRV terms.
According to Martinez, this crossover typically signals the start of major bull rallies, as it indicates that market participants are accumulating Bitcoin at a faster rate. This accumulation trend tends to create upward pressure on price.
Martinez also pointed to historical data. In previous instances, when the MVRV Ratio crossed its 365-day SMA, Bitcoin experienced substantial rallies. Particularly, similar crosses in 2020, 2021 and 2023 preceded price surges of 638%, 69% and 236%, respectively.
More Room for Growth
This time, with the MVRV Ratio golden cross newly formed, Martinez suggests Bitcoin may again be on the verge of a major rally. Despite Bitcoin’s recent peak at $72,000, Martinez reassured investors that there is still room for substantial upside.
Notably, market veteran Peter Brandt also argues that Bitcoin still has room for growth, predicting a top of $135K. However, Brandt insists BTC has still not recorded a breakout for this second leg up.
The upcoming U.S. presidential election could catalyze this much-needed breakout. Matthew Sigel, VanEck’s Head of Research for Digital Assets, argued that Bitcoin’s correlation with traditional assets is bullish going into the elections. At press time, BTC trades for $72,410.