Bitcoin (BTC) continued to put pressure on overhead liquidity on May 17 as analysts predicted a new golden cross on lower timeframes.
BTC price action remained near its highest levels since mid-April, according to data from Cointelegraph Markets Pro and TradingView. However, liquidity at $67,000 and above was preventing further upside, totaling around $75 million at the time of writing, based on data from monitoring resource CoinGlass.
Despite not reaching its all-time highs from 2024 and 2021, Bitcoin excited market observers. Popular pseudonymous trader Moustache highlighted the imminent golden cross on the 12-hour chart. A golden cross occurs when a shorter-term moving average crosses above a longer-term equivalent, and the last occurrence in October last year preceded Bitcoin’s significant gains.
Moustache mentioned that the last bullish cross happened over six months ago, and Bitcoin has risen by over 170% since then.
Another trader, Titan of Crypto, suggested that the Ichimoku Cloud indicator may follow a similar pattern. They noted that BTC seems to be repeating the same pattern from early 2024 and that when Ichimoku requirements were last met, BTC/USD saw an upside of more than 60%.
Titan of Crypto also observed that $60,000 has transitioned from resistance to support. This area contains various bull market trendlines, including the short-term holder realized price and the 100-day moving average, which is rising rapidly and now above $62,000. They summarized that BTC is effectively flipping previous resistance into support.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.