Another Rise Signal Has Been Seen in Bitcoin

The bitcoin indicator, which had warned in early September that the sell-off would end, turned bullish and started supporting a move above $70,000.

The MACD histogram, a technical analysis indicator used to measure trend strength and changes, turned positive on the weekly chart for the first time since April, according to charting platform TradingView.

The positive technical outlook, a reiteration of the Fed’s bias towards rate cuts, an increased likelihood that pro-crypto Republican candidate Donald Trump will win the US election on November 5, and anti-risk Japanese yen weakness will push bitcoin to at least $100,000 by the end of December. seems consistent with consensus.

MACD is calculated by subtracting the average price level of bitcoin over the last 26 periods (weekly) from the average of the last 12 weeks. The signal line is then calculated as the nine-week average of the MACD and the difference between the MACD and signal lines is plotted as a histogram.

The movement of the histogram relative to the price in the first half of September indicated the exhaustion of the downtrend.

Bitcoin is up nearly 30% since falling below $53,000 in early September. The leading cryptocurrency by market cap rose to $69,500 during Asian trading hours.

The MACD’s bullish signal follows a similar pattern to last week’s line break chart, suggesting that the bulls may finally manage to establish a foothold above $70,000 after failing several times since the first quarter.

A similar MACD bullish crossover occurred in October last year, when bitcoin broke through the long-standing $30,000 resistance and reached a record high above $73,000 in March. The bull crossover seen in late 2022 marked the bottom of the bear market.