Today, in the crypto market, Bitcoin is retrying its golden cross. This is a bullish pattern that preceded past parabolic rallies and is a “classic rationalization” move by crypto traders who cite President Trump’s tariffs as the reason for dumping the market. Meanwhile, Zcash has recovered to its pre-crash highs.
Bitcoin retests golden cross, a breakout could trigger a big rally: Analyst
Bitcoin is once again testing the golden cross, a bullish technical pattern that has historically preceded its rally, according to cryptocurrency market analyst Mr. Crypto.
In a Sunday post on X, the analyst shared a chart pointing out that Bitcoin (BTC)’s historical golden cross led to gains of 2,200% in 2017 and 1,190% in 2020. As BTC is currently hovering around $110,000, he suggested that sustaining above that level could trigger another parabolic move.
“This setup looks incredibly strong,” he wrote, adding that if the breakout is confirmed, Bitcoin prices could “absolutely explode” in the coming weeks.
A golden cross is a bullish trading signal that occurs when the short-term moving average (usually 50 days) rises above the long-term moving average (often 200 days). This indicates that momentum is shifting from bearish to bullish, which means the price may start to rise.
Cryptocurrency traders slam Trump’s tariffs for ‘unusual event’: Santiment
Santiment said retail crypto traders were quick to blame Friday’s decline in the overall crypto market on U.S. President Donald Trump’s announcement of 100% tariffs on China, as they often look for blame during declines.
But analysts say the reasons for the market slump go deeper than just tariffs.
“This is a typical ‘rationalization’ move by retailers, and it is necessary to point to a singular event as the reason for the catastrophic downturn in cryptocurrencies,” Santiment said in a report on Saturday.
“After the crash, crowds jumped right in and tried to collectively come to a consensus on what was causing the flash,” Santiment said, referring to the increase in social media discussions related to both the crypto market and U.S.-China tariff concerns.
Zcash regains pre-crash highs
Zcash (ZEC) price recovered to pre-crash highs and hit a new high of around $293 on Saturday following a rapid flash crash on Friday that triggered $20 billion in crypto liquidations within 24 hours.
Zcash is trading at around $293 per coin at the time of writing after plummeting 45% on Friday. The price recovery stands apart from most altcoin markets, which suffered double-digit losses through Saturday.
The value of altcoins fell by up to 95% on Friday following US President Donald Trump’s statement announcing increased tariffs on China.
This crash was the most rapid and severe crypto liquidation incident in the history of the crypto industry, and served as a reminder of the risks of leveraged trading.
