Bitcoin is currently in the process of retesting the golden cross, a bullish pattern historically associated with significant price rallies. Analysts are indicating that a successful breakout above the $110,000 threshold could trigger another substantial upward movement.

In a post from Sunday, analyst Mister Crypto highlighted Bitcoin’s past golden crosses which saw price increases of 2,200% in 2017 and 1,190% in 2020. He noted that if Bitcoin holds above this level, it could lead to a new parabolic price surge.

“The setup looks incredibly strong,” he concluded, emphasizing that a confirmed breakout could cause Bitcoin’s price to “absolutely explode” in the near future.

A golden cross occurs when a short-term moving average crosses above a long-term moving average, indicating a shift in market momentum from bearish to bullish.

Bitcoin retests golden cross Bitcoin retests golden cross. Source: Mister Crypto

In related analysis, Mac also emphasized the importance of Bitcoin maintaining the $110,000 mark to avert the possibility of the current market cycle ending. Despite expecting a moderate price increase, he noted that the short-term market indicators suggest potential upward movement.

Bitcoin needs to maintain $110,000 level Bitcoin must hold above $110,000. Source: Mac

Furthermore, Tom Lee, Co-Founder of Fundstrat, remarked that the recent pullback in the stock market might have been anticipated, as markets have surged 36% since April. He noted that the increase in the VIX, a measure of market volatility, suggests that investors are seeking safety in these uncertain times.

“If someone says, ‘Are we higher a week from today?’ I’m going to say the odds are actually really good,” he stated confidently.

In other news, the recent market decline has been linked to an announcement by President Donald Trump, stating that a 100% tariff will be imposed on all Chinese imports starting November 1, in response to new export restrictions from China on rare earth minerals.