Bitcoin eyes $36K support as chart hints at potential golden cross within weeks

Optimism is still rampant despite intraday losses accelerating on BTC/USD, which is targeting giant buyer support at $36,000. 

Bitcoin (BTC) returned to hit local lows of $37,500 on Wednesday in a fresh installment of its comedown from above $42,000.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“So far so good” as BTC cools

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD repeatedly challenging then briefly breaking through the $37,500 mark Wednesday.

As the market digested comments from Gary Gensler, the new Chair of the United States Securities and Exchange Commission, BTC price action continued to retrace progress from the previous week.

As Cointelegraph reported, traders were keenly eyeing $36,000 as important support, a showdown with which BTC/USD has yet to begin.

“So far so good for Bitcoin,” Cointelegraph contributor Michaël van de Poppe summarized on the day.

BTC/USD buy and sell levels (Binance) as of Aug. 4. Source: Material Indicators/Twitter

A look at order book data from major exchange Binance highlighted the veracity of support at the target level, with sellers still lined up at $41,000 and above.

At the time of writing, BTC/USD circled $37,650 after a modest reactionary bounce higher.

From death to gold within weeks

Fellow trader Rekt Capital also remained optimistic, forecasting an increasingly anticipated “golden cross” event on BTC/USD as soon as the end of the month.

A golden cross, the counterpart to the “death cross,” involved the rising 50-day moving average price crossing above the 200-day moving average. The latest price increase, while partially reversed, has nonetheless managed to push such a scenario forward after the death cross in June.

“BTC has enjoyed such a recovery that the two Death Cross EMAs have begun to flick upwards,” he noted Tuesday.

“If $BTC continues to hold these highs or rally higher then a best-case scenario Golden Cross could occur in late August.”

BTC/USD 1-day candle chart (Binance) with crosses. Source: Rekt Capital/ Twitter

Meanwhile, in terms of market sentiment, interest in higher price levels was firm throughout the week despite the retracement. Strong on-chain data combined with conspicuous, albeit unknown, buying activity to buoy bulls further.