Is Bitcoin About to Explode? "Golden Cross" Appears Amid Concerns Over America Debt

The Bitcoin price chart is reflecting a bullish pattern ahead of a price increase from $70,000 to $100,000 by the end of 2024 in the context of growing concerns about the sustainability of U.S. debt. According to the TradingView chart platform, the top cryptocurrency by market value appears to be on the verge of confirming a "golden cross" in the coming days. This pattern occurs when the 50-day simple moving average (SMA) of the price crosses above the 200-day SMA, indicating that the short-term trend is outperforming the broader trend, with the potential to develop into a major bullish rally. The moving average based on the golden cross has a mixed record in predicting price trends. However, the upcoming line is noteworthy as it is set to occur a few weeks after its concerning counterpart, the death cross, causing bears to be stuck on the wrong side of the market. A similar pattern occurred from August to September 2024, setting the stage for a convincing move above $70,000 in early November. The price ultimately reached a record high of over $109,000 in January this year.

The chart on the left shows that BTC reached a bottom of around $50,000 in early August last year when the 50-day SMA crossed below the 200-day SMA to confirm the death cross. In other words, a death cross is a bear trap, quite similar to the trap at the beginning of April this year. The price increased in the following weeks, eventually starting a new bullish trend after a golden cross appeared at the end of October 2024. The bullish trend has been repeating since the beginning of April and prices may start to rise stronger after confirming the golden cross in the coming days. Past performance does not guarantee future results, and technical patterns do not always yield expected outcomes. However, macro factors seem to align with the bullish technical setup. Moody's Amplifies Concerns About U.S. Debt On Friday, the credit rating agency Moody's downgraded the United States' national credit rating from the highest level of "Aaa" to "Aa1", citing concerns over the rising national debt, which has now reached 36 trillion dollars. The bond market has priced in financial concerns for some time. Last week, CoinDesk detailed how rising Treasury bond yields reflect expectations of financial waste and a national risk premium, both of which are bullish for Bitcoin.