Bitcoin Crashes After Golden Cross—Is This the Calm Before the Surge?

Bitcoin’s price has taken a sharp hit shortly after forming the highly anticipated golden cross, where the 50-day EMA crossed above the 200-day EMA. The move, often seen as a long-term bullish signal, was quickly followed by a steep retracement from the $112,000 range down to around $107,000.

Despite the dramatic pullback, market analysts are not sounding alarms. Recent observations suggest that this dip fits past patterns seen when a golden cross occurs. Market setbacks in the short run have many times given the market a rest, helping it recover and move onward.

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Support has held despite the selloff, with Bitcoin currently trading above the key breakout zone at $102,000, and most analysts believe it will remain protected unless strong selling pressure emerges.
The retracement has happened on reduced volume, indicating sellers may be experiencing decreasing power.

These indicators are leaning further in favor of the bullish stance, as the Relative Strength Index is close to 70, signaling the market is correcting its gains without a reversal.

Support Levels Hold as Market Prepares for Potential Rebound

One analyst noted that “Bitcoin may continue to decline after the golden cross,” but emphasized that the broader market structure remains intact. The decline appears to be driven by traders locking in profits from the previous rally, rather than a fundamental shift in sentiment.

Market watchers are also pointing to a familiar trend, as sharp corrections following golden crosses often give way to stronger price action. With leverage being reset and positions leaving the market, Bitcoin might be getting ready to rise again.

This recent move is being viewed as a technical correction rather than a trend reversal. If Bitcoin preserves values above $102,000 to $105,000, it will become more likely that the current bullish tendency will continue.

The recent fluctuations align with typical market behavior following a golden cross, indicating that the latest decline may signal the early stages of a broader upward movement.

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