Is Bitcoin’s Golden Cross Signaling a Massive Rally Ahead Despite Rising Treasury Yields?

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Bitcoin (BTC) is once again on the verge of a critical price movement, but is this the moment for a bull run? As U.S. Treasury yields continue to rise, some analysts worry this could halt Bitcoin’s growth. With the cryptocurrency nearing a “golden cross,” a strong bullish signal, could Bitcoin be ready for its next massive rally?

Treasury Yield Concerns For BTC

Bitcoin has recently struggled to break past the $70,000 mark, causing some market watchers to worry that rising U.S. Treasury yields could trigger a significant price drop. 

However, the 10-year Treasury yield has hit a three-month high of 4.26%, raising concerns among those who believe higher yields make bonds more attractive, potentially pulling investments away from riskier assets like Bitcoin.

Meanwhile, TS Lombard, a research firm, argues that the fear surrounding rising yields may be overhyped. According to them, the increase in yields is consistent with past non-recessionary rate cuts by the Federal Reserve, and it doesn’t signal a bearish outlook for risk assets like Bitcoin.

Golden Cross Could Drive a Bullish Surge

Amid these concerns, Bitcoin’s 50-day Simple Moving Average (SMA) is about to cross above its 200-day SMA, creating the highly anticipated “golden cross.” This pattern often signals that short-term momentum is gaining strength, which could lead to a bull run.

Though the Golden Cross is sometimes criticized for being a lagging indicator, history shows that it has occasionally predicted major bull runs. 

For instance, traders who held Bitcoin after previous golden crosses saw substantial returns, including a surge to over $73,000 following a similar pattern in late 2023.

What Next?

Despite concerns about Treasury yields, Bitcoin’s golden cross suggests that its price could soon head higher. With past patterns supporting a bullish outlook, the market may be gearing up for a significant upward movement, regardless of the economic backdrop.