Bitcoin to Enter “Bucking Bull” Phase

by James · March 23, 2023

Bitcoin formed a historical bullish pattern when the 50-day moving average crossed above the 200-day moving average. According to an analyst from the chain analysis firm Jarvis Labs, this pattern is known in the market as a golden cross and forecast price increase in the coming months.

Bitcoin’s last golden cross occurred in 2021 and seems far in the rearview mirror for investors. At this point, the crypto was able to drive the bullish wave to new all-time highs (ATH).

510 days ago, in September 2021, Bitcoin saw a golden cross before hitting a low of $29,000. After that, the most prominent cryptocurrency in the market climbed to uncharted territory in November 2021, rising 45% since then.

In 2015, Bitcoin rose 6,566% to an all-time high of $20,000. In April 2019, Bitcoin rose 154% to reach $14,000 as the price action saw a golden cross like today.

Furthermore, in 2021 Bitcoin rallied 45% after the golden cross effect materialized and reached its recent and current record high of $69,000. But can Bitcoin confirm a new bullish macro?

The Bucking Bull

A recent newsletter from the Jarvis Labs team and its crew member under the pseudonym “JJ the Janitor” reviewed the macroeconomic environment and how the crypto market is positioned when the golden cross materializes on the Bitcoin charts. The analyst stated:

“The golden cross” can be considered the first flowers of spring. It occurs when the 50-day moving average rises above the 200-day moving average. Every time this has happened with Bitcoin, it has confirmed that a new macro bullish trend is underway.

Bitcoin is approaching the golden cross, heralding a new bull market. Source: JarvisLabs

The 50-day ($19,820) just crossed the 200-day ($19,720), creating Bitcoin’s first “golden cross” since September 2021. The green line represents the 50-day moving average (MA), and the red line the 200-day MA .

According to Jarvis Labs, prices fall just after each cross, causing a “brutal shake-out in the market” before reaching new highs. This market shakeout allows the new trend to cement before the arrival of a “full-blown” bull market.

Before the bull run took over the market in September 2021, allowing the price of Bitcoin to reach the milestone of $69,000 from $48,000 (when the Golden Cross event took place), BTC saw a minus -20% retracement that sent it below $40,000.

DXY Confluences with a New Bitcoin Bull Market

The US Dollar Index (DXY) has been in a downtrend since Q4 2022. According to Jarvis Labs, since the dollar has an inverse correlation to crypto, the former’s downtrend could open the gates for an “early 2023 crypto rally.”

DXY fell 12% from its September 2022 high of 114.80 to 100.80. Meanwhile, Bitcoin climbed from the $16,000 floor to over $24,000 in late January.

For Jarvis Labs, DXY’s trend coincides with the idea of a crypto bull market. However, the nascent asset class may experience a “strong shake-out” before going full throttle.

In addition, the Jarvis Labs team has seen the return of large whale wallets, indicating that large amounts of money have accumulated since the start of 2023.