Technical Analysts Eye Bitcoin Golden Cross After $110K Retest

Bitcoin is retesting the golden cross pattern, according to crypto market analyst Mister Crypto. Cointelegraph reports that the analyst shared a chart on Sunday showing Bitcoin's previous golden crosses preceded gains of 2,200% in 2017 and 1,190% in 2020.

Bitcoin currently trades near $110,000. Mister Crypto stated that holding above this level could trigger another parabolic move. The analyst wrote that the setup looks strong. He added that a confirmed breakout could push Bitcoin's price higher in the coming weeks.

A golden cross occurs when the 50-day moving average crosses above the 200-day moving average. This pattern indicates that short-term momentum is shifting from bearish to bullish. The technical signal has historically preceded major rallies in Bitcoin's price history.

Critical Support Level Determines Market Direction

Crypto analyst Mac warned that Bitcoin must hold the $110,000 level to avoid ending the current cycle. According to Cointelegraph, Mac noted that the 4-hour Money Flow Index shows deeply oversold conditions. This suggests Bitcoin could see a short-term bounce.

The analyst stated the risk-to-reward setup appears favorable. However, he does not expect a major surge immediately. Mac anticipates a period of upward movement next week.

Institutional interest in Bitcoin remains strong. We recently reported that Strategy announced plans for a $2 billion convertible note offering specifically for Bitcoin acquisition. The company now holds approximately 478,740 Bitcoin worth over $46 billion. This represents about 2.5% of Bitcoin's total supply.

Bitcoin broke above $120,000 in early October for the first time since August. This demonstrates strong momentum in crypto derivatives markets.

Macro Factors Shape Bitcoin's Path Forward

Credit rating agency Moody's downgraded the U.S. sovereign credit rating from Aaa to Aa1. The downgrade cited concerns over increasing national debt, which has reached $36 trillion. The bond market has been pricing fiscal concerns for some time.

Persistent elevated Treasury yields reflect expectations for continued fiscal spending. These factors traditionally support Bitcoin as an alternative asset. Fundstrat co-founder Tom Lee believes the recent stock market pullback may be overdue. Markets have risen 36% since April, according to Lee.

The VIX volatility index spiked by 1.29%, representing the 51st largest spike in VIX history. Lee argued this typically represents a short-term market bottom. When traders rush to hedge rather than sell, it often precedes market recoveries.

President Trump announced 100% tariffs on all Chinese imports starting November 1. This came in response to Beijing's new export restrictions on rare earth minerals. China accounts for approximately 70% of global rare earth supply.

The tariff announcement contributed to recent market volatility. However, analysts note that Bitcoin often benefits during periods of geopolitical uncertainty. The combination of technical patterns and macro factors creates a complex environment for Bitcoin traders. Market participants are closely monitoring whether Bitcoin can maintain support above key levels.