BTC May Correct 8% Before the Golden Cross Is Validated: Analyst

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.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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