Bitcoin eyes $36K support as chart hints at potential golden cross within weeks

Market Analysis

Bitcoin (BTC) returned to hit local lows of $37,500 on Aug. 4 in a fresh installment of its comedown from above $42,000.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

‘So far so good’ as BTC cools

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD repeatedly challenging then briefly breaking through the $37,500 mark Wednesday.

As the market digested comments from Gary Gensler, the new Chair of United States regulator, the Securities and Exchange Commission (SEC), BTC price action continued to retrace progress from the previous week.

As Cointelegraph reported, traders were keenly eyeing $36,000 as important support, a showdown with which BTC/USD has yet to begin.

“So far so good for Bitcoin,” Cointelegraph contributor Michael van de Poppe summarized on the day.

BTC/USD buy and sell levels (Binance) as of Aug. 4. Source: Material Indicators/Twitter

A look at orderbook data from major exchange Binance highlighted the veracity of support at the target level, with sellers still lined up at $41,000 and above.

At the time of writing, BTC/USD circled $37,650 after a modest reactionary bounce higher.

From death to gold within weeks

Fellow trader Rekt Capital also remained optimistic, forecasting an increasingly-anticipated “golden cross” event on BTC/USD as soon as the end of the month.

Related: Betting on tax bill FUD: 5 things to watch in Bitcoin this week

A golden cross, the counterpart to the “death cross,” involved the rising 50-day moving average price crossing above the 200-day moving average. The latest price increase, while partially reversed, has nonetheless managed to push such a scenario forward after the death cross in June.

“BTC has enjoyed such a recovery that the two Death Cross EMAs have began to flick upwards,” he noted Tuesday.

“If $BTC continues to hold these highs or rally higher then a best case scenario Golden Cross could occur in late August.”

BTC/USD 1-day candle chart (Binance) with crosses. Source: Rekt Capital/ Twitter

Meanwhile, in terms of market sentiment, interest in higher price levels was firm throughout the week despite the retracement. Strong on-chain data combined with conspicuous, albeit unknown, buying activity to buoy bulls further.

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