Bitcoin Retests Golden Cross: Analysts Say Break Above $110K Could Ignite Major Rally

Key Highlights:

• Bitcoin approaches key golden cross pattern, historically a precursor to parabolic rallies.

• Analysts say holding above $110,000 could confirm renewed bullish momentum.

• Macro volatility and tariff tensions may influence near-term investor behavior.

Bitcoin Flirts With Golden Cross as Traders Watch $110K Level

Bitcoin (BTC) is retesting the golden cross formation — a bullish technical signal that has often preceded major rallies — prompting renewed optimism among traders and analysts.

As of Sunday, Bitcoin traded around $113,030, hovering near the critical $110,000 support level that could determine the next phase of its market cycle. According to market strategist Mister Crypto, previous golden cross formations led to monumental gains: roughly 2,200% in 2017 and 1,190% in 2020.

“The setup looks incredibly strong,” he wrote on X (formerly Twitter), suggesting that a confirmed breakout above $110,000 could “absolutely explode” Bitcoin’s price trajectory in the coming weeks.

A golden cross occurs when a short-term moving average (often the 50-day) rises above a long-term moving average (typically the 200-day), signaling a shift from bearish to bullish momentum. For traders, it represents the transition between consolidation and a potential new leg higher.

Technical Setup Points to Potential Breakout

Crypto analyst Mac echoed the bullish setup but cautioned that the $110,000 zone remains pivotal. In his recent analysis, he noted that Bitcoin’s Money Flow Index (MFI) — a momentum oscillator measuring buying and selling pressure — is “deeply oversold,” suggesting that the asset could be primed for a short-term rebound.

“The risk-to-reward setup looks favorable,” Mac said, while noting that he expects only a “little more upward chop” in the near term before a decisive breakout.

If Bitcoin can sustain a move above its current resistance, analysts say the next target lies between $120,000 and $125,000, a zone that could determine whether the next bull phase materializes or fades.

Market data from Glassnode shows that long-term holders continue to accumulate, with exchange outflows reaching their highest level in three months — an indication that traders may be positioning for further upside.

Broader Market Turbulence Adds to Bitcoin’s Volatility

While crypto-specific momentum is improving, macro conditions continue to exert pressure on risk assets. According to Fundstrat co-founder Tom Lee, the broader stock market’s recent pullback “was overdue,” following a 36% rally since April.

On Friday, U.S. equities saw their largest single-day drop in six months, pushing the CBOE Volatility Index (VIX) up by 1.29% — its 51st largest spike on record. Lee noted that such spikes often precede short-term rebounds, as investors hedge positions rather than liquidate.

Meanwhile, geopolitical developments have added a new layer of uncertainty. President Donald Trump announced 100% tariffs on all Chinese imports starting November 1, in retaliation for China’s rare earth export restrictions set to take effect in December.

Given that China controls around 70% of the global rare earth supply, the escalation could ripple through both traditional and crypto markets as traders reassess risk exposure.

Market Psychology: Accumulation or Exhaustion?

Despite near-term turbulence, sentiment across the crypto community remains cautiously bullish. The combination of historical technical strength, institutional inflows, and macro hedging demand continues to support Bitcoin’s appeal as a non-sovereign store of value.

However, analysts warn that failure to hold above $110,000 could weaken the bullish thesis, potentially signaling that Bitcoin’s current cycle is maturing. “This is the make-or-break point,” one trader noted. “Above $110K, the market runs; below it, consolidation resumes.”

The psychological anchor of the golden cross pattern has historically reinforced confidence among retail and institutional traders alike — often catalyzing a self-fulfilling rally. Whether this dynamic repeats in 2025 will depend on how Bitcoin behaves in the coming days as it retests key support.

Bitcoin’s Next Phase: Momentum Meets Macro Reality

As Bitcoin consolidates near its golden cross level, the next few weeks could determine whether the world’s largest cryptocurrency reclaims its parabolic rhythm or faces another cycle of sideways drift.

With increasing volatility, geopolitical tension, and mounting institutional interest, Bitcoin stands at a critical inflection point. Should bullish momentum sustain and the $110,000 threshold hold firm, analysts agree — a major rally could be back on the horizon.