Bitcoin price action is bullish once again, and the leading cryptocurrency by market cap has made a strong recovery back to around $50,000. According to lead PrimeXBT analyst Kim Chua, a Golden Cross forming in BTCUSD gave bulls enough “firepower” to blast through the $44,000 to $48,000 region.
Chua says that the level has since flipped to “very strong base support” and that the spot market driving prices higher suggests the upward move is likely sustainable. If momentum continues, a “quick parabolic move” toward $100,000 or more is possible to finish the cycle.
Golden Cross Revives Bullish Momentum In Bitcoin
A surplus of stablecoin inflows and a return of spot buying on crypto exchanges have pushed Bitcoin price high enough to form a “Golden Cross.” A Golden Cross occurs when a short-term moving average crosses above a long-term moving average and signals to the market that an asset is more than likely bullish and ready to move up for an extended phase.
Previously, Bitcoin formed a Death Cross, only for the Golden Cross to follow weeks later as resistance from $44,000 to $48,000 was flipped from resistance to ironclad support. With a “strong base” built, PrimeXBT analyst Kim Chua believes a retest of the asset’s all-time high is next, and it could come “within a month.”
Parabolic Move Could Propel Bitcoin To $100,000 Or More
If Bitcoin surpasses its former all-time high of around $64,000, Chua claims that the market will react with a “quick parabolic move.” The reason for the fast and furious move is due to market participants who have been sidelined waiting for new lows being forced to FOMO back in higher.
When the market realizes new lows will never happen, FOMO could spiral out of control and help to push cryptocurrency valuations to incredible new highs. The first significant hurdle between Bitcoin price and a retest of all-time highs is another resistance zone between $53,000 to $55,000 which Chua says “should be achievable this week.”
If Bitcoin passes that level, Chua believes that the cycle will further resemble the 2013 bull market. Should the cryptocurrency “follow a similar trajectory,” Bitcoin could smash through its current all-time high within a month and shoot higher to $100,000 or more.
About Kim Chua, PrimeXBT Market Analyst:
Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.