Bitcoin (BTC)’s weekly moving average convergence/divergence (MACD) indicator is approaching a crossover that has historically coincided with price increases.
As seen in the following TradingView chart, the MACD moving average is approaching a cross. Movement confirmed late Sunday night If the current trend in the Bitcoin market remains bullish or at least flat.
MACD measures the difference between two exponential moving averages (in this case, the faster of 12 periods and the slower of 26 periods were established). When a fast line crosses a slow line, It is interpreted as a sign of positive momentum. And when the opposite happens, it leads to a loss of purchasing power.
On weekly charts, this crossover usually has a medium-term impact and is monitored by technical analysts to predict trend changes.
Currently, the price of Bitcoin is still above $122,000, but the MACD is showing a negative bar decrease, suggesting a loss for Bitcoin. momentum bassist. If the blue line is above the orange line at the week’s closing price, A new technical buy signal will be confirmed.
Although past performance of technical analysis indicators does not guarantee future results, past performance gives relevance to trend analysis. In the past 5 times since 2019, During this time frame, four bullish crossovers occurred prior to significant price movements.
The focus here is on the closing price of the weekly candlestick, which defines whether the MACD confirms the signal or not. If that happens, Could signal a new momentum cycle for the Bitcoin marketthe currency is maintaining a high-rise structure on the weekly chart.
The market’s technical performance is joined by other fundamental fluctuations that suggest BTC still has a way to go in this bullish cycle before reaching new highs. Analysts interviewed by CriptoNoticias, like economist Daniel Arees, claim that the price of the digital currency could reach up to $200,000. More cautious ones, such as Emmanuel Juarez, have suggested that BTC could rise to USD 150,000 this year.
(Tag Translation) Analysis and Research
