Market Traps After the Golden Cross Pattern? Analysis of Bitcoin’s Trend After Breaking $110,000

Most investors expect $140,000 to be the next price target for Bitcoin, but the market is rarely as straightforward as we expect. By digging deeper into historical trends and market data, I found that Bitcoin may face a certain correction in the short term.

The Truth Behind the Golden Cross Pattern Signal

In the field of technical analysis, the golden cross pattern where the 50-day moving average crosses above the 200-day moving average is generally seen as a strong buy signal. However, upon deeper investigation, it becomes apparent that this seemingly positive signal often conceals unexpected market traps.

In fact, a golden cross pattern is often followed by a short-term pullback, rather than an immediate rise.

Historical data shows that after the formation of a golden cross pattern, Bitcoin typically experiences an adjustment of about 10%, after which it enters a new round of strong upward movement, ultimately breaking through its historical high. This pattern exhibits significant repetitiveness:

• In February 2021, Bitcoin fell by 10% within 7 days after the formation of the golden cross pattern.
• In March 2024, Bitcoin fell by 11% before rebounding strongly to hit new highs

! [The Golden Fork Trap After $110,000?] Bitcoin outlook and position recommendations](https://img.gateio.im/social/moments-9152145765a303fe3423be7fa0cb1763)

The logic behind this phenomenon is that the golden cross is often the last shuffle of the main funds before a sharp rise, with the aim of clearing short-term speculators and impatient retail positions, paving the way for the subsequent sharp rise.

It is this post-breakout rally that has triggered an influx of more funds, especially since investors who had previously exited the market re-entered the market, driven by the FOMO mentality, further driving the price up.

Current Market Condition Analysis

Bitcoin has seen a correction of about 8% this week, which is in line with the pattern of history. There are now signs of a rebound in price, suggesting strong buying support in the $104,000-$105,000 range.

! [The Golden Fork Trap After $110,000?] Bitcoin outlook and position recommendations](https://img.gateio.im/social/moments-f5288cd2dcf84a11e630c4b28fb25239)

At the same time, it is obvious that when the price breaks through $110,000, the upward momentum has weakened significantly, and there is a typical phenomenon of “good news does not get a positive response”, which is often a precursor to a short-term adjustment.

Future Trend Prediction

Based on the current market structure and historical patterns, two possible development paths can be anticipated:

1. If the price can firmly hold the support at $105,000 (, there is a high probability that Bitcoin will likely repeat the classic trend after the golden cross pattern, advancing towards the $150,000 area.

2. If it falls below the key psychological level of $100,000, a further correction may occur, with the target area between $90,000 and $95,000.

Investment Strategy Recommendations

For investors who have not yet opened positions, this may be a good entry point, as the short-term market outlook remains optimistic.

From a risk management perspective, there is a greater inclination towards defensive strategies at this stage:

• Mainly configure leading mainstream cryptocurrencies such as Bitcoin, Ethereum, Solana, etc.
• Carefully select a few emerging projects with real investment value, such as Cookie, W, IOTA, etc.

![Golden cross pattern trap after $110,000? Bitcoin market outlook and holding suggestions])https://img.gateio.im/social/moments-dc73b50dc9fa636cc9b81a7a7b4f940b(

For investors with existing positions, it is recommended to stick to the original strategy and avoid frequent adjustments to positions due to short-term fluctuations, as this often leads to greater risk exposure.