On Sunday, the biggest cryptocurrency printed a UTC close well above $51,109, marking an upside break of the 61.8% Fibonacci retracement of the April-to-June sell-off.
The breakout could bring additional demand because chart traders often use Fibonacci ratios such as 61.8%, 38.2%, and 23.6% to identify support, resistance and trading opportunities.
Trend-following traders consider the golden cross as a buy signal and may hit the market with fresh bids. The previous instance of the golden cross, in May 2020, was followed by an 11-month climb that saw prices rise from $9,000 to over $60,000. It’s not, however, a perfect indicator, having trapped traders on the wrong side of the market in February 2020 and July 2014.