Bitcoin Forms Golden Cross, 63% Rally Possible as Institutions Accumulate

Bitcoin has recently formed a Golden Cross on the Bull Market Support Band, a technical event that has historically preceded significant price increases. This pattern occurs when the 50-day moving average crosses above the 200-day moving average, indicating a bullish momentum. The last time this pattern appeared, it was followed by a 63% rally in Bitcoin's price. This technical setup is drawing attention from market analysts who see it as a potential signal for a renewed bullish phase.

Merlijn The Trader highlighted this development, noting that the current crossover aligns with a broader support zone, which increases confidence among technical analysts. The combination of short-term recovery and long-term trend strength suggests that Bitcoin could be entering a new upward trend. This technical structure is further supported by improving market sentiment, which could reinforce the bullish outlook.

Quinten, an analyst, tweeted about a "historic Bitcoin buy signal" that has previously led to major upward moves for Bitcoin. Although the specific indicator was not mentioned, such signals are closely followed by traders, especially when they appear in tandem with a Golden Cross. This reinforcement comes at a time when investors are cautiously optimistic, and traders are revisiting bullish strategies as the market attempts to regain momentum.

Technical traders are now closely monitoring the market for confirmation through volume and price action over the coming weeks. This period of observation will be crucial in determining whether the current technical indicators translate into sustained price increases.

In addition to the technical developments, public companies are continuing to increase their Bitcoin exposure. Firms such as ANAP Holdings, H100 Group, and Vanadi Coffee have made recent Bitcoin purchases, with ANAP Holdings adding 50.56 BTC to its holdings. The total number of public companies holding Bitcoin has grown to 116, with a combined 809,100 BTC now held. This figure has more than doubled from the 312,000 BTC recorded a year earlier, indicating growing corporate confidence in Bitcoin as a treasury asset.

These accumulation trends, combined with the bullish technical patterns, suggest a renewed interest from both institutions and market analysts. The current market conditions, supported by technical indicators and institutional investment, could signal the beginning of a new bullish phase for Bitcoin.