Bitcoin News Today: Bitcoin's Golden Cross Signals 12% Gain, Traders Eye 2000% Rally

On May 22, a golden cross was confirmed on Bitcoin’s daily chart, sparking renewed optimism among several technical analysts. This technical signal, which occurs when the 50-day simple moving average (SMA) crosses above the 200-day SMA, indicates a medium-term trend reversal. Traders and analysts are closely monitoring this crossover, as it has historically preceded significant rallies in Bitcoin's price.

Trader Merlijn highlighted the signal on the X platform, comparing this setup to previous major bullish cycles. He noted that every time this signal appears, Bitcoin takes off, referencing past performances where similar golden crosses preceded rallies exceeding 2,000%. For instance, in 2017 and 2020, such signals were followed by substantial price increases. The previous crossover, observed in October 2024, coincided with a Bitcoin increase from $65,000 to nearly $110,000, a new all-time high. Since the May 22 signal, a 12% gain has already been recorded, although this is considered modest compared to past cycles.

While the technical signal is clear, its effectiveness depends on its sustainability. Not all golden crosses turn into prolonged bull runs; some episodes in the past saw the short moving average quickly drop back below the long one, invalidating the signal. However, for now, the market seems to give credence to this crossover, strengthening the idea of a potentially ongoing bullish phase.

Bitcoin’s current price momentum remains suspended at a critical level. According to analyst and trader Rekt Capital, the $120,000 threshold constitutes a major resistance. A daily close above this resistance followed by a post-break retest would confirm a breakout to new highs for Bitcoin. As long as Bitcoin hasn’t validated a solid daily close above this zone followed by a successful retest, the scenario of a new surge remains theoretical. This stagnation phase favors an influx of capital into altcoins, creating a form of breathing room in the Bitcoin market while stimulating other cryptocurrencies.

From a historical perspective, several analysts mention ambitious targets. Merlijn estimates that Bitcoin could aim for up to $155,000 if the 2016 golden cross pattern were to partially repeat. Meanwhile, the intermediate target of $135,000 is often cited as the next step in case of a confirmed bullish breakout. However, it should be noted that the macroeconomic context and institutional appetite will largely influence this trajectory. Golden crosses are powerful tools, but never infallible.