The Bitcoin market is regaining strength as a combination of technical indicators and macroeconomic developments fuel investor optimism. A key driver of this renewed enthusiasm is the nomination of economist Stephen Miran to the Federal Reserve Board by former President Donald Trump. Miran’s pro-Bitcoin stance and support for looser monetary policy have sparked hopes for a more crypto-friendly regulatory environment.
Golden Cross Pattern Signals Potential Upside
Market analyst Merlijn The Trader has highlighted the recent appearance of a golden cross on Bitcoin’s weekly chart, calling it “the signal that never misses.” Historically, this pattern has preceded major rallies, including gains of 139 percent in 2016, 2200 percent in 2017, and 1190 percent in 2020. According to Merlijn, the current setup mirrors those past cycles, suggesting that Bitcoin could be on the verge of another significant surge.
On the daily chart, Bitcoin is holding above an ascending trendline that has remained intact since April. After bouncing near the $112K level, the price is now hovering around $116K, with resistance at $117.5K near the 0.236 Fibonacci level. A breakout above this zone could open the path toward $121K and $123.8K, corresponding to the 0.382 and 0.5 Fibonacci extensions. The RSI sits at 53, indicating neutral momentum.
However, failure to stay above the trendline could trigger a pullback to $112K. The ability of bulls to maintain this structure will be key in determining Bitcoin’s next move.
On-Chain Metrics Reinforce Bullish Outlook
Supporting the technical setup is Bitcoin’s Stock-to-Flow (S2F) ratio, which has climbed to 154. This metric reflects increasing scarcity and aligns with strong demand cycles, reinforcing a positive long-term outlook.
With technical indicators, macro policy shifts, and on-chain fundamentals aligning, Bitcoin appears poised for another breakout. Sustaining key support levels will be critical in confirming the next leg upward.
Pro-Crypto Nomination Adds Macro Tailwind
Stephen Miran’s nomination to the Fed has added a layer of macro support to the bullish narrative. His views on rate cuts and digital assets align with investor hopes for a more favorable policy environment. Historically, such conditions have benefited Bitcoin, especially during the early stages of bull markets.
Together, these factors suggest that Bitcoin may be gearing up for a powerful rally in the months ahead.
Frequently Asked Questions (FAQs)
- What is the Golden Cross and Its Significance for Bitcoin?
The golden cross is a technical chart pattern that forms when Bitcoin’s 50-day moving average climbs above its 200-day moving average. This crossover has historically signaled the beginning of major upward price movements.
- Who Is Stephen Miran and Why Is His Fed Appointment Relevant to Bitcoin?
Stephen Miran, an economist known for his support of Bitcoin, has been nominated to the Federal Reserve by Donald Trump. His appointment could pave the way for more crypto-friendly monetary policies, which may benefit Bitcoin’s long-term outlook.
- What Do the Stock-to-Flow and MVRV Metrics Reveal About Bitcoin Now?
The Stock-to-Flow (S2F) model indicates increasing scarcity of Bitcoin, while the Market Value to Realized Value (MVRV) ratio remains high but not excessive. Together, these metrics suggest strong yet measured bullish momentum.
