Bitcoin Approaches Golden Cross as Moody’s Downgrade Fuels U.S. Debt Worries
Bitcoin (BTC) is on the verge of completing a golden cross pattern, signaling potential bullish momentum just as Moody’s downgrade intensifies concerns about U.S. fiscal stability.
Data from TradingView shows that Bitcoin’s 50-day simple moving average (SMA) is about to cross above the 200-day SMA—a classic indicator that short-term momentum is gaining strength over the longer-term trend. This pattern closely follows a death cross signal earlier this year, which ended up misleading bearish traders and setting the stage for a rally.
This scenario mirrors a similar setup from late 2024, when a death cross appeared in August but was quickly reversed, leading to a surge that pushed Bitcoin above $70,000 by November. The rally continued into early 2025, reaching record highs over $109,000.
Bitcoin had bottomed near $50,000 as the death cross formed last year, but the subsequent golden cross signaled the start of a strong uptrend. Now, a similar technical formation suggests the next upward leg may be imminent as the golden cross confirmation approaches.
Though technical patterns are not foolproof, the current setup coincides with worsening macroeconomic conditions that tend to support Bitcoin’s role as a safe-haven asset.
Moody’s Downgrade Highlights Growing U.S. Debt Risks
Moody’s credit rating agency downgraded the U.S. sovereign rating from “Aaa” to “Aa1,” citing the ballooning national debt, now exceeding $36 trillion. This move underscores increasing investor concerns about fiscal sustainability.
The bond market has already factored in these risks, with elevated Treasury yields reflecting expectations of ongoing fiscal challenges. Historically, such an environment boosts Bitcoin’s appeal as investors seek alternatives amid traditional market uncertainty.
