Bitcoin Forms a Golden Cross, Signaling Potential Bull Run

Bitcoin's Golden Cross: A Bullish Indicator

Bitcoin, the leading cryptocurrency by market capitalization, has recently formed a golden cross, a significant chart pattern. This occurs when a short-term moving average, typically the 50-day MA, crosses above a long-term moving average, such as the 200-day MA. This pattern is often viewed as a strong indicator of a rising bullish trend.

Recent Surge and Market Momentum

In the past two weeks, Bitcoin experienced a 30% surge, breaking past $35,000 for the first time since May 2022. This upward momentum is largely attributed to expectations that the U.S. Securities and Exchange Commission (SEC) might approve exchange-traded funds (ETFs) that invest directly in Bitcoin. This speculation propelled Bitcoin to $35,157 on October 27, marking an 18-month high.

Market Value and Potential for Growth

Despite recent profit-taking, Bitcoin has shown resilience, rebounding over the weekend and maintaining growth in recent days. The market value to realized value (MVRV) ratio indicates that Bitcoin is not yet at the overheated levels seen in past bull markets, which often peaked at over 300% MVRV. This suggests there is potential for further growth in the current bull market.

Rising Interest Among Indirect Investors

Interest in Bitcoin is also increasing among indirect investors. The Fund Holding index, which tracks the quantity of coins held by digital asset-holding entities like trusts, has reached its highest level in two months. This surge is linked to the anticipated approval of Bitcoin ETFs in the United States, highlighting a growing confidence in Bitcoin's market potential.

In summary, Bitcoin's golden cross and recent price surge indicate a bullish trend, with room for further growth as investor interest continues to rise.