Bitcoin's Weekly Chart May See Golden Cross for First Time in 3.5 Years

Bitcoin's short-term 50-period moving average is edging closer toward the longer-term 100-period moving average on the weekly chart, hinting at a potential bullish "Golden cross" formation for the first time in 3.5 years.

In the shorter term total weekly volume has fallen period-to-period as indecision continues to grip the market.

Bitcoin looks on track to produce a bullish long-term signal not seen in 3.5 years.

The 50-period and the 100-period MAs have edged closer together on the weekly chart after BTC rebounded from $7,293 to $10,350 on Oct. 26, according to Bitstamp data.

A cross of the 50-period MA moving up above the slower 100-period MA, known as a golden cross, generally hints at a strong shift in a trend and can act as confirmation of a bullish bias for the long-term view.

The last time that bull cross occurred on the weekly chart was way back in May 2016, when the price of BTC started rising from $438 to near $20,000 in December 2017 - a 4,800 percent increase.

Total weekly volume has shrunk from two weeks ago, an indication of market indecision on a fairly stagnant price, while the RSI is barely trending bullish above 52.7.

Should the two lines converge and then cross bullish, that would be a strong indication that the 2019 reversal rally has legs.

With a strong fundamental event for BTC occurring right around the corner, it's important to take note of the bullish signals on larger time frames.

More immediately, the daily chart suggests market equilibrium, as prices have been largely stuck within a $650 range for nearly two weeks.