Bitcoin News Today: Bitcoin Surges 0.4% to $118,754 as Golden Cross Signals Potential Rally

Bitcoin has recently experienced a significant rally, reaching new all-time highs and consolidating below the $120,000 range. Market analysts have identified a key signal that suggests the asset could see more explosive gains in the coming months: the BTC golden cross. This signal forms when the 50-day simple moving average (SMA) crosses above the 200-day SMA, often preceding massive price gains, although this does not always occur.

According to crypto trader Merlijn, the bitcoin golden cross has just appeared, increasing the chances of BTC going parabolic in the coming months. Merlijn noted that BTC ballooned 139% when the cross appeared in 2016 and 2,200% when it showed up in 2017. Bitcoin also surged another 1,190% after the golden cross was spotted in 2020. Merlijn stated, “Now it’s flashing again in 2025. Same setup. Same signal. Miss this and you’ll remember it forever. Bitcoin is about to leave orbit.”

However, not all golden crosses come with massive rallies. In September 2021, the signal flashed again, but BTC climbed only 50%. Another SMA crossover in October 2023 triggered a 45% rise in bitcoin’s price. These brief surges are often associated with the 50-day SMA failing to remain above its 200-day equivalent for an extended period. Short-lived crosses lead to minimal price spikes, while the long ones can trigger parabolic movements for bitcoin’s value.

It is also worth noting that golden crosses do not always precede BTC price spikes. There have been cases where price crashes have followed the cross, primarily due to unfavorable macroeconomic conditions. One incident occurred in February 2020, when the COVID-19 outbreak, which affected the global financial market, led to a 62% decline in bitcoin’s price after the golden cross appeared. Such experiences highlight the need to factor in broader technical and macro factors when analyzing the golden cross.

Currently, analysts believe bitcoin fundamentals will support a sustainable bullish trend. With diminishing supply and rising demand, the chances of the bears taking control over the next few weeks are low. However, market analyst Rekt Capital says BTC needs a daily close above $120,000 and a post-breakout retest to reach new highs. Currently, the asset is consolidating and facilitating money inflow into altcoins.

Bitcoin has recently experienced a significant surge in price, reaching above the $120,000 mark within the past 24 hours. This upward trajectory has been accompanied by a steady climb in the Bitcoin NVT Golden Cross, which has been a key indicator of market sentiment. The NVT Golden Cross, which occurs when the 50-day moving average crosses above the 200-day moving average, has historically signaled an overheated market. At the time of reporting, Bitcoin was trading at $118,754, reflecting a 0.4% increase over the previous day.

The recent price action has also seen the ETH/BTC ratio climb to 0.0267 BTC, breaking a year-long downtrend and hinting at a potential target of 0.035 BTC. This shift in the ratio suggests that Ethereum is gaining ground relative to Bitcoin, which could indicate a broader trend in the cryptocurrency market. Experts have suggested that Bitcoin may consolidate in the near term, as the market adjusts to the recent price movements.

The upward momentum in Bitcoin's price has also sparked bullish predictions from analysts. According to the analyst's forecast, the flagship cryptocurrency could soar to $200,000 by the end of 2025. This prediction is based on the assumption that Bitcoin will continue to gain mainstream adoption and institutional investment. However, it is important to note that this is an analyst's forecast and not a guaranteed outcome.