Bitcoin’s (BTC) recent momentum could lead to gains of over 50%, following the confirmation of a bullish golden cross technical formation.
According to an analysis by TradingShot, the golden cross emerged as Bitcoin formed the fourth bullish leg within a long-term “channel up” pattern that began after the November 2022 bottom.
In a May 28 post on X, the analyst pointed out that this channel has reliably guided Bitcoin’s price through multiple consolidation phases, often around the 0.5 Fibonacci retracement level, before each breakout.
A golden cross typically occurs when the 50-day moving average (MA) crosses above the 200-day (MA). At the same time, Bitcoin’s weekly MACD has printed a bullish cross, further supporting the upward trend.
Bitcoin’s next record high price target
Historically, these indicators have preceded significant rallies, and the current market structure shows strong similarities. Bitcoin remains within its upward channel and appears to have room to move higher.
Based on Fibonacci extension levels and the prevailing bullish pattern, TradingShot projects Bitcoin could climb to as high as $165,000, a potential 51% increase from its current price near $109,000.
Meanwhile, in response to the golden cross, analysis from SmartReversal has outlined several key short-term price levels to monitor. In a separate May 28 X post, the analyst noted that this development is especially notable, as similar signals haven’t yet appeared in major stock indices.
The upper Bollinger Band (BB), which previously widened during periods of consolidation, has started to flatten and curve downward. This marks a shift from earlier behavior and could point to waning momentum.
At the same time, the Relative Strength Index (RSI) has dropped to 65.79 after peaking near 84, even as prices continued to rise. This kind of bearish divergence is often an early warning of a possible reversal.
Bitcoin key price levels to watch
Currently, Bitcoin is facing resistance near $111,195, a level that coincides with a local high and the upper Bollinger Band. On the downside, support lies around the 20-day MA which is approximately $109,191, the 50-day MA, which is near $105,595, and the 200-day MA at $96,716.
If Bitcoin fails to push past the $111,195 resistance level and the RSI keeps trending lower, a pullback toward the 20- or 50-day MA may follow. A drop below the 200-day average could signal a more bearish medium-term outlook.
On the flip side, a clean breakout above the upper Bollinger Band would invalidate the bearish divergence and confirm the continuation of the bullish trend.
Bitcoin is currently holding steady at nearly $110,000 despite lingering recession concerns. Notably, momentum is gaining support from increased corporate interest in holding Bitcoin as a treasury asset.
For instance, as reported by Finbold, Trump Media and Technology Group (NASDAQ: DJT), the parent company of Truth Social and partly owned by Donald Trump, announced a $2.5 billion capital raise to purchase Bitcoin. The funding includes a $1.5 billion stock sale and $1 billion in zero-coupon senior secured bonds. The deal is expected to close on May 29.
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