Cryptos pull back after weekend rally, but bullish ‘golden cross’ now looms for Bitcoin
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Cryptos are paring back their gains a bit after Bitcoin and Ethereum surged over the weekend to their highest levels since the May 19 liquidation event — but market sentiment has definitely tilted bullish.
The overall market was down 1.6 per cent this morning to $1.84 trillion, and the Crypto Fear & Greed Index dipped from 74 to 65. Both numbers are still a “greedy” read, however.
A pullback is healthy — you’ve been through this. #Bitcoin
— David Gokhshtein (@davidgokhshtein) August 8, 2021
Bitcoin’s weekly close at 10am AEST (midnight UTC) was also its third straight green candle.
#Bitcoin just closed a candle above its 21-week EMA.
— Raicher (@allanraicher) August 9, 2021
At 11.03am AEST, BTC was trading at US$43,177, down 3.1 per cent from yesterday, while Ethereum was changing hands at US$2,934, down 7.2 per cent from yesterday.
Just six of the top 100 cryptos were in the green, led by XDC Network, “an enterprise-ready hybrid blockchain for global trade and finance,” according to its website. Holo and Elrond had also posted more modest gains.
On the flip side, SafeMoon was the biggest decliner in the top 100, falling 19.6 per cent to a five-day low. Meme coins Shiba Inu and Dogecoin followed with 15.8 and 12.8 per cent drops, respectively.
Bitcoin analysts Lark Davis and Rekt Capital both said that a bullish “golden cross” was looming for Bitcoin — the opposite of the bearish “death cross” the original cryptocurrency hit in June. (BTC dropped further after that, to around US$29,500 on July 20, but it managed to avoid a plunge to US$20,000 some predicted).
— Lark Davis (@TheCryptoLark) August 8, 2021
A golden cross occurs when a crypto or security’s short-term exponential moving average (EMA) breaks above its long-term exponential moving average. The 50-day and 200-day EMAs are commonly used.
That said, there were still a few contrarians out there who were not believing the bullish sentiment.
Personal $BTC target: $18.5K
I now have bids on both Binance & Coinbase Pro ranging between $17K & $21K.
Learn to think for yourselves rather than relying on Moon Boy twitter accounts that are run by greedy people.
Remember 👉🏽 If everyone is thinking alike nobody is thinking.
— Harry ✍️ Won’t DM You (@InverseBull) August 5, 2021
The problem with calling this Bitcoin rally a dead cat bounce is that it has gone down and sideways for the last 4 months.
You are effectively bearish on the first pullback in the bull market. pic.twitter.com/yrvlm1DkVr
— Kennedy (@CryptoKennedy) August 8, 2021