Bitcoin forms a golden cross, analysts predict parabolic moves ahead

Bitcoin price continued its strong recovery, rising for three consecutive days and reaching its highest level since July 29.

Bitcoin (BTC), the original cryptocurrency and the largest cryptocurrency by market cap, has retested the psychological $68,000 level, meaning it has bounced almost 40% from its August lows.

The odds are increasing that Bitcoin will continue to climb. First, the crypto fear and greed index rose from the greed zone of 37 to 58 last week. BTC and other cryptocurrencies often rise when there is a sense of greed in the market.

Bitcoin price also formed a golden cross formation with the 50-day and 200-day Weighted Moving Averages showing an upward trend.

This transition last occurred on October 23 last year, and the cryptocurrency rose 120% to an all-time high of $73,800 in March.

WMA is considered a better type of moving average than simple and exponential moving averages because it smoothes the data by giving more weight to recent movements.

Bitcoin also formed an inverse head and shoulders pattern and reversed the key resistance point at $66,561, the highest rise on September 27. It also crossed the descending trend line connecting the highest swings since March.

Bitcoin price chart | Source: TradingView Why is Bitcoin price increasing?

Bitcoin is rising for two main reasons. First, Donald Trump’s odds of winning the election have increased, and Polymarket puts that odds at 60%.

Trump is seen as a positive candidate for the crypto industry due to his strong support of the industry. According to Arkham, he is a cryptocurrency owner with a portfolio of over $6 million. He also launched World Liberty Financial, a crypto project.

At the same time, research shows that tax cuts, defense spending and tariff policies could lead to a deficit of $7.5 trillion within a decade. This is notable as US public debt has ballooned to over $35.5 trillion. Investors see Bitcoin as a better alternative to the US dollar because its supply limit is 21 million coins.

Polymarket odds of Bitcoin reaching a record high have risen to 70%.

Odds of Bitcoin reaching all-time high | Source: Polimarket

Meanwhile, analysts are optimistic about Bitcoin. Peter Brandt, a popular trader with more than 740,000 followers, predicted that the cryptocurrency will move higher and its first target will be the all-time high of $73,800.

An inverted expanding triangle has about a 50% chance of working up to a measured goal.

If you say “only 50%, so what use are charts” then you probably shouldn’t be trading because you don’t have a nuanced understanding of timing and the asymmetry between reward and risk pic.twitter.com/0BREq2hN6Q

— Peter Brandt (@PeterLBrandt) 16 October 2024

Other analysts also offered positive Bitcoin predictions. Miles Deutscher predicted that the next Bitcoin boom will be much bigger than most expected and will be followed by fear of missing out. Michael van de Poppe predicts further upside in the long term as the Federal Reserve lowers interest rates.