A key indicator for Bitcoin has just turned bullish for the first time since April, signaling a potential move towards the $70,000 mark. The moving average convergence divergence (MACD) histogram, which measures trend strength and changes, has shifted positively on the weekly chart. This indicates a renewed upward momentum for Bitcoin, suggesting a bullish outcome in the trading range between $50,000 and $70,000.
This recent bullish signal is in line with the overall sentiment that factors such as the Federal Reserve’s possible rate cuts, the likelihood of a pro-crypto Republican candidate winning the U.S. election, and the weakness of the Japanese yen could drive Bitcoin’s price to at least $100,000 by the end of the year.
The MACD calculates the difference between Bitcoin’s average price over the past 26 weeks and the average over the past 12 weeks. The signal line, which is a nine-week average of the MACD, is then plotted as a histogram. This indicator is closely followed by market analysts, and its recent movement in September indicated a potential end to the downtrend.
Bitcoin has already seen a 30% increase since its lows below $53,000 in early September, reaching as high as $69,500 in Asian trading hours on Monday. The MACD’s bullish signal, along with a similar signal from the “line break chart” last week, suggests that the $70,000 resistance level may finally be breached by the bulls.
Looking back at history, a similar MACD bull cross occurred in October of last year when Bitcoin broke through the $30,000 resistance level, eventually reaching a peak of over $73,000 in March. This previous bull cross in late 2022 marked the bottom of the bear market, indicating the potential for significant price movements following such signals.
Overall, the positive sentiment surrounding Bitcoin’s price trajectory, combined with technical indicators like the MACD, paints a bullish picture for the cryptocurrency’s future. The recent signals indicate a strong possibility of Bitcoin surpassing the $70,000 mark and potentially reaching new all-time highs in the coming months. Investors and traders will be closely watching these developments to capitalize on potential price movements in the market.