{"id":424509,"date":"2020-05-20T01:00:56","date_gmt":"2020-05-20T01:00:56","guid":{"rendered":"https:\/\/wncen.com\/?p=424509"},"modified":"2020-05-19T23:09:27","modified_gmt":"2020-05-19T23:09:27","slug":"bitcoin-forms-golden-cross-pattern","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-forms-golden-cross-pattern\/","title":{"rendered":"Bitcoin Forms Elusive Golden Cross Pattern as Economic Models Forecast Fresh Highs"},"content":{"rendered":"

Bitcoin has seen some notable upwards momentum throughout the past several weeks, but it has failed to successfully surmount the $10,000 region.<\/p>\n

This price region has been a historically strong level of resistance for the benchmark cryptocurrency, as it has failed to hold above it for any extended period of time subsequent to its late-2017 crash from highs of $20,000.<\/p>\n

This trend may not persist for too much longer, however, as a recently confirmed<\/a> golden cross seems to suggest that it is poised to see further upside.<\/p>\n

One popular economic model has also revised its BTC outlook due to the stronger-than-expected post-halving price action, now forecasting that it could soon be trading at multiples of its current price.<\/p>\n

Bitcoin\u2019s Ongoing Consolidation May Not Last for Too Much Longer<\/strong><\/h2>\n

At the time of writing, Bitcoin<\/a> is trading down marginally at its current price of $9,680. This is around the price level at which it has been trading at in the time following this morning\u2019s rejection at just under $10,000.<\/p>\n

Today\u2019s decline from these highs marks the latest in a series of rejections that BTC has faced at this level, with the selling pressure here seemingly being insurmountable.<\/p>\n

It is a positive sign that none of the rejections seen throughout the past few days have sparked any type of sustained selloff, as the support found by BTC within the lower-$9,000 region has been quite significant.<\/p>\n

One factor to be aware of that suggests Bitcoin could be primed to see a move significantly higher is a recently formed golden cross pattern.<\/p>\n

This elusive pattern was formed between its 50-day and 200-day moving averages and elucidates that the crypto\u2019s macro market structure is incredibly strong.<\/p>\n

It is important to note that golden crosses are lagging indicators that form as a response to previously bullish price action.<\/p>\n

Although they don\u2019t provide valuable insight into short-term trends, they do have a track record of offering intelligence into an asset\u2019s mid and long-term outlook.<\/p>\n

\"Bitcoin
Image Courtesy of CryptoBirb<\/a><\/figcaption><\/figure>\n

Popular Economic Model Now Forecasts That BTC Could be Trading at Nearly $300k in Coming Years<\/strong>\u00a0<\/strong><\/h2>\n

The stock-to-flow model has long been looked towards by investors to justify large price targets<\/a>.<\/p>\n

Despite being controversial, the model is based on the simple economic principles of supply and demand, and now signals that Bitcoin could have a multi-trillion-dollar market capitalization in the years ahead.<\/p>\n

PlanB \u2013 the Bitcoin commentator who has crafted this model \u2013 spoke about the stock-to-flow cross asset model in a recent tweet, explaining that it suggests Bitcoin could soon be trading at nearly $300,000.<\/p>\n

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#bitcoin<\/a> S2FX clusters:<\/p>\n

1 – S2F 1.3 -> Market Value $1M -> BTC $0.23
2 – S2F 3.3 -> $58M -> $6
3 – S2F 10.2 -> $5B -> $410
4 – S2F 25.1 -> $114B -> $6700
5 – S2F 56.0 -> $5.5T -> $288K<\/p>\n

Beauty is that change in S2F is proportional to change in BTC Market Value (d_MV=d_S2F^4.1)\ud83d\udd25 pic.twitter.com\/jdM8kBFMdj<\/a><\/p>\n

— PlanB (@100trillionUSD) May 15, 2020<\/a><\/p><\/blockquote>\n