Bitcoin Teases Golden Cross as U.S. Debt Jitters Fuel Crypto Rally—Just Weeks After Bear Trap

Bitcoin’s chart flashes a bullish signal as the 50-day MA eyes a crossover above the 200-day—classic golden cross setup. This comes after BTC liquidated over-leveraged shorts in April’s fakeout dip, proving once again that crypto markets eat cautious bears for breakfast.

Meanwhile, Washington’s debt ceiling theatrics send traditional investors scrambling for hedges. Gold bugs and bitcoin maximalists suddenly find common ground: both groups now smirk at Treasury’s ’full faith and credit’ punchlines.

Will this golden cross follow through? History says maybe—but in crypto, technicals often bow to Elon’s tweets and Jerome Powell’s espresso habits.

The chart on the left shows that BTC bottomed out at around $50,000 in early August last year as the 50-day SMA moved below the 200-day SMA to confirm the death cross.

In other words, the death cross was a bear trap, much like the one in early April this year. Prices turned higher in subsequent weeks, eventually beginning a new uptrend after the appearance of the golden cross in late October 2024.

The bullish sequence is being repeated since early April, and prices could begin the next leg higher following the confirmation of the golden cross in the coming days.

Past performance does not guarantee future results, and technical patterns do not always deliver as expected. That said, macro factors seem aligned with the bullish technical setup.

Moody’s amplifies U.S. debt concerns

On Friday, credit rating agency Moody’s downgraded the U.S. sovereign credit rating from the highest ”Aaa” to ”Aa1”, citing concerns over the increasing national debt, which has now reached $36 trillion.

The bond market has been pricing fiscal concerns for some time. Last week, CoinDesk detailed how persistent elevated Treasury yields reflected expectations for continued fiscal splurge and sovereign risk premium, both bullish for bitcoin.