BTC Price Analysis: Bitcoin’s Recent Silver Cross Points to Potential Breakout Above $40K

The post BTC Price Analysis: Bitcoin’s Recent Silver Cross Points to Potential Breakout Above $40K appeared first on Coinpedia Fintech News

Bitcoin’s market cap is dominant, and it continues to attract mainstream and financial institutions. Despite a bearish week, Bitcoin’s price rebounded and is now near a one-week high on Monday, showing signs of consolidation. However, in a YouTube video by Eric Krown Crypto, the analyst highlighted the historical data and patterns and analyzed the upcoming direction for the king coin. 

Considering the historical data he said that the potential highest price for Bitcoin could reach after a Silver Cross within the next year. The most recent Silver Cross indicates the possibility of Bitcoin surpassing $40,000, assuming a 60% rally.

Even if we consider the lowest historical return of almost 60%, it would still push Bitcoin above $40,000.  The current range for Bitcoin lies between approximately $29,600 and $31,300. Breakouts above or below these levels may signal short-term continuation in the respective direction.

The Weekly Silver Cross: 

The weekly Silver Cross refers to the intersection of the yellow 21-exponential moving average (EMA) crossing above the green 55-EMA on the Bitcoin price chart. Throughout Bitcoin’s history, there have been four prior instances of this pattern. These occurrences have often resulted in substantial gains for Bitcoin, with some instances witnessing thousands of percentage points in price increases before the next macro high.

Among the four prior Silver Cross instances, three have led to major upward price moves, while one instance could be considered a trap. Despite this, even the trap instance saw an impressive 60% price increase. On average, it took approximately 169 days for Bitcoin to reach its next major high following the Silver Cross, with the first occurrence taking nearly 365 days. The average return during this period was around 244%.