CryptoCon warned traders today that BTC may undergo a short-term correction.
The analyst’s prediction comes after a Golden Cross formed on BTC’s daily chart.
Despite the bearish outlook, CryptoCon believes that the Golden Cross may be validated after the correction.
The technical analyst CryptoCon warned in an X post earlier today that Bitcoin (BTC) may see its price drop in the short term. His prediction comes after a significant bullish technical flag, known as a Golden Cross, was triggered on the market leader’s daily chart.
By now I'm sure you've heard about the Golden Cross that just happened for #Bitcoin.What you probably didn't hear is what this is, or what comes after.But don't worry, I've outlined every Golden Cross that's come outside of a bear market downtrend to show you!This our… pic.twitter.com/ivhEAwyWAN
— CryptoCon (@CryptoCon_) October 30, 2023
A Golden Cross is when the 50-day moving average (MA) crosses above the 200-day MA line. Traders tend to identify this as a strong buy signal and a potential sign that a cryptocurrency’s long-term trend is transitioning to bullish. Recently, this bullish technical flag was triggered on the leading cryptocurrency’s daily chart.
Daily chart for BTC/USDT (Source: TradingView)
Subsequently, many traders and investors anticipate a rally in BTC’s price, which could potentially be followed by a broader market rally. Despite this, CryptoCon believes that the market may undergo a brief correction in the short term before entering into another leg up.
The analyst based his prediction on BTC’s price movements shortly after historical occurrences of a Golden Cross. According to the post, BTC typically experiences around an 8% decline. Should history repeat itself with this latest occurrence, BTC’s price may retrace to around $31,600.
Thereafter, the analyst believes that BTC may enter into a strong move. According to CryptoCon, two of the past seven Golden Cross events on BTC’s chart took place just before the market entered into a bull run. Furthermore, another two came right before BTC’s price underwent a meteoric rise.
At press time, CoinMarketCap indicated that BTC suffered a slight loss over the past 24 hours. Consequently, the cryptocurrency was down 0.09%. This dragged the cryptocurrency’s price down to $34,290.20. The latest drop in price nudged BTC’s weekly performance further into the red zone, taking it down to -0.44%.
BTC was able to reach a high of $34,843.94 throughout the past day of trading. Since then, it has retraced to trade at its current level. As a result, BTC was trading closer to its daily low of $34,110.97.
The post BTC May Correct 8% Before the Golden Cross Is Validated: Analyst appeared first on Coin Edition.
