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Bitcoin Crashes After Golden Cross—Is This the Calm Before the Rise?
Bitcoin sharply fell right after forming the highly anticipated golden cross, when the 50-day EMA crossed above the 200-day EMA. This move, often regarded as a long term bullish signal, was quickly followed by a strong pullback from the $112,000 range to around $107,000. Despite the significant pullback, market analysts did not issue warnings. Recent observations show that this decline is consistent with previous patterns when golden crosses occur. The market's short-term pullbacks have often allowed the market to rest, aiding in recovery and progress. Support remains intact despite the sell-off, with Bitcoin currently trading above the important breakout zone at 102,000 dollars and most analysts believe it will remain protected unless strong selling pressure appears. The retreat has occurred with reduced volume, indicating that sellers may be experiencing diminishing strength. These indicators are leaning more towards a bullish trend as the Relative Strength Index is nearing 70, signaling that the market is adjusting its gains without a reversal.
Support Level Holds Steady As The Market Prepares For Recovery Potential An analyst noted that "Bitcoin may continue to fall after the golden cross," but emphasized that the broader market structure remains intact. The decline appears to be driven by traders locking in profits from the previous bullish run, rather than a fundamental shift in sentiment. Market watchers also point out a familiar trend, as strong corrections following golden crosses often give way to stronger price action. With leverage reset and positions exiting the market, Bitcoin may be preparing to rise again. This recent move is seen as a technical adjustment rather than a trend reversal. If Bitcoin maintains its value between $102,000 and $105,000, the current bullish trend is likely to continue. The recent fluctuations align with the typical behavior of the market after a golden cross, suggesting that the latest decline may signal the early stage of a broader bullish rally.