Bitcoin pump incoming - Golden Cross?! 👀

What’s up traders. Brief market update for you all before we roll into the weekend.

There’s been some chatter amongst the Bitcoin perma-bulls that there may be a juicy pump ahead.

We’ll break down why we’re hearing calls for another run up, and why you should caution against such a case so you’re not caught with your pants down.

Let’s dive right in…

We’ve been seeing and hearing from the perma-bulls that Bitcoin is experiencing a “Golden Cross” on the Daily timeframe.

This is a “bullish” technical indicator that takes place when the 50 day moving average crosses the 200 day moving average to the upside.

“Oh great, so pump incoming then?!”

Not so fast.

Although this is can be a bullish indicator, the macroeconomic climate can show us why a pump might be unlikely to happen.

For one, the AlgoBuddy Momentum 2.0 indicator is showing signs of Bitcoin being overbought, which can hint at a move to the downside.

Which we’re starting to see signs of with Bitcoin falling under $23K (at the time of this writing).

Another more compelling reason can be found on the Bitcoin Weekly chart.

We’re actually seeing the opposite happen, that is a “Death Cross”. Where the 50 MA crosses the 200 MA to the downside. Which is a “Bearish” indicator.

However, the most compelling reason why a pump is NOT likely to happen, can be found on the VIX and DXY.

The VIX is currently approaching a 5-year support, of which has rallied off of 4 times prior.

If you’re not aware; VIX goes up = equities go down. When equities go down = Bitcoin usually also goes down.

Not to mention we are seeing a serious rally in the Dollar.

Combine all of this together with other bearish macro factors, and the rumored “Bitcoin Pamp” might be dispelled.

Looking in the shorter-term on the 4H chart, we can see a potential short opportunity showing up.

If Bitcoin fails to hold back above the ~$22.6K support, which it recently broke below, and approaches the ~$22.3K range low, this might be a decent place to short.

Especially if it falls below the ~$22.3K level. The only real support we have is in the $19-21K range (blue rectangle).

Obviously, trade at your own risk & this is NONE of this is financial advice or an alert to trade a position.

We never want to be overly bullish or bearish, but hopefully this helps you all get a more informed look into what Bitcoin and the markets are doing and might do in the future.

As always, eyes peeled out there and we hope you all have a great rest of your week!

Cheers.

-The AlgoBuddy Team