Golden Cross Signals Strong Future for Bitcoin Price

The golden cross seen on a recent daily chart signals a very strong future for Bitcoin prices – so strong, some say, we may not see prices south of $10,000 very often in the coming months, if not at all. Thanks to a long-standing bull run for BTC, along with strong buyer confidence and an incoming halving event for the popular crypto, the stage is set for stability and green candles a plenty.

The halving event coming in May will have a significant effect on BTC. Once the dust settles, we can expect inflation rates for Bitcoin to be under 2%. Compared to other assets considered to be in the ‘safe haven’ category, including USD and gold, those inflation rates are far lower than anything else out there. What does that mean for BTC? In short, Bitcoin is soon to be one of the most attractive assets available worldwide.

In addition to the low rates of inflation that are expected, the very nature of a halving event spells good news overall for a cryptocurrency. Halving cuts rewards for miners in half which triggers scarcity. That scarcity drives up prices and increases interest in new investments. With Bitcoin already sitting in a strong place, the halving is expected to have a significant impact.

The golden cross that we just witnessed on the daily charts, is very similar to the one that occurred just before the previous halving event. As a result of that golden cross, Bitcoin’s prices increased by nearly 220% – which was an increase high enough to send the popular coin to new highs. If this golden cross has even close to the same effect, the $10,000 price that has been the focus high of the past few months will be comfortably under any expected low to come.

At the moment, BTC is fluctuating between the mid-$9,000s and low $10,000s. With so many indications pointing toward a strong incoming bull run, as well as known events that are expected to drive prices up, we may never see prices under $10,000 again once BTC gains enough ground in the upward direction.

The halving event is only part of the story. Bitcoin also has an inbuilt system that guarantees scarcity to longer it is mined. As BTC matures there will be fewer coins created which will create more demand for the ever-growing crypto. More demand, of course, will also drive prices up – likely for good.

Another likely indicator that BTC is on an upward trajectory is the fact that there is greater mainstream acceptance the world over for Bitcoin, as well as virtually all other crypto options, altcoins included. With companies like Coinbase joining forces with the likes of Visa to create crypto debit cards and governments of world powers developing their own crypto options, it has become clear that cryptocurrencies are here to stay.

The golden cross signals a strong future for Bitcoin but so do many other factors. Despite the apparent good news for Bitcoin and cryptocurrency enthusiasts, it is important to keep in mind the inherent volatility of crypto. When investing in any asset, it is a wise choice to diversify your portfolio.

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