Bitcoin Indicator Turns Bullish for First Time in 8 Months

The list of indicators signaling a long-term bullish reversal in bitcoin (BTC) continues to grow with each passing week.

The latest to join the list of a select few is the MACD histogram, which has moved above zero – turned bullish – for the first time since January.

The MACD histogram, which oscillates above and below the zero line, is one of the most popular technical indicators used to determine the trend reversal and momentum.

A bearish-to-bullish trend change is confirmed when the histogram moves above the zero line. On the other hand, a bearish reversal is confirmed when the histogram dips below zero.

The bullish turn of the MACD histogram adds credence to BTC’s strong defense of the psychological support of $6,000 in the last ten weeks.

Further, it validates bearish exhaustion indicated by BTC’s long-tailed monthly candle and the record low net shorts in the BTC futures market.

At press time, BTC is trading at $7,320 on Bitfinex, representing a 0.8 percent appreciation on a 24-hour basis.

BTC weekly chart

As seen in the chart above, the histogram has moved above the zero line for the first time since January. More importantly, the bullish turn in the MACD is accompanied by a falling channel breakout (bullish pattern).

So, it seems safe to say that the outlook as per the weekly chart has turned bullish. As a result, BTC could explore the upside towards the July highs above $8,500 in the next few weeks.

While the long-term picture is looking rosy, the cryptocurrency could drop to $7,000 (psychological support) in the next day or two, if the wedge pattern seen in the chart below ends with a downside break.

4-hour chart

The rising trendline has been breached, so BTC could dip below the wedge support of $7,230 in the next few hours.

On the other hand, a high volume bullish breakout would signal a continuation of the rally from the August low of $5,859.


  • A combination of the falling channel breakout and the bullish weekly MACD indicates scope for a rally to the July highs above $8,500.
  • For the next 24 hours, the investors need to keep an eye on the pennant pattern seen in the 4-hour chart. A bullish breakout could yield a rally to $7,500, while a downside break would shift risk in favor of a drop to $7,000.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; Charts by Trading View

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Author: Omkar Godbole

Source link

Related posts

14 Thoughts to “Bitcoin Indicator Turns Bullish for First Time in 8 Months”

  1. 醫學美容-心神-外科-cosmetic-wiki

    Alphanova 艾蘿若華 【嬰幼保養系列】寶貝三合一泡泡露 Bebe Bubble Wash 3 in 1 Bubble Bath Bodywash&Shampoo的商品介紹 Alphanova 艾蘿若華,嬰幼保養系列,寶貝三合一泡泡露 Bebe Bubble Wash 3 in 1 Bubble Bath Bodywash&Shampoo,有網友推薦最新1

  2. 醫學美容-朵璽-明色-cosmetic-wiki

    herbacin 德國小甘菊 【經典手部護理】小甘菊柔皙護手霜的商品介紹 herbacin 德國小甘菊,經典手部護理,小甘菊柔皙護手霜的詳細商品介紹,有網友推薦最新236篇化妝品使用心得分享,還有提供通路訊息、試用機會、優惠訊息與相關報導等相關資訊。

  3. 醫學美容-施華蔻-美脈-cosmetic-wiki

    選對髮型馬上瘦面 一分鐘學會紮這種馬尾髮型小顏即成! Marie Claire (HK) Edition 髮型的重要性,小編就不用多說了,今天想分享這個可馬上小顏的馬尾造型,把辮子紮旁邊果邊有小顏作用啊! 馬上學起來吧! Patrick Evan Salon(@pat

  4. Football Solutions Leaders Dortmund resume normal service

    When Roque Santa Cruz signed a new four-year contract with Blackburn in August he claimed he did so out of a sense of loyalty. Rovers had trained the spotlight on him in the Premier League when he had been fading away in the shadows at Bayern Munich. HATCHET MAN: Santa’s presence at Blackburn might not last much longer

  5. Football Solutions Women's Under-19 - Teams

    Southampton’s Virgil van Dijk has posted a photo of himself on a private plane as the transfer tussle heats up for the defender. The photo shows him looking pensively out of the window. Virgil van Dijk jets off on private plane as he waits on offers from Manchester United, Manchester City and Chelsea

  6. UEFA Europa League - Vitesse - Eduardo - Statistics

    Joe Cole has revealed he signed for Liverpool because they are the ‘biggest club in England’. The England midfielder officially signed his four-year deal – worth £80,000 a week – after leaving Chelsea this summer. Joe Cole: I left Chelsea to sign for Liverpool because they are the biggest club in England

  7. betflix

    … [Trackback]

    […] Find More to that Topic: […]

  8. สล็อตแตกง่าย

    … [Trackback]

    […] Information on that Topic: […]

  9. nova88

    … [Trackback]

    […] Read More Information here to that Topic: […]

  10. Burnley dating

    … [Trackback]

    […] Here you will find 14936 more Information to that Topic: […]

  11. over here

    … [Trackback]

    […] There you will find 86517 additional Info on that Topic: […]

  12. hillapple

    … [Trackback]

    […] Find More Information here to that Topic: […]

  13. stop screenshot

    … [Trackback]

    […] Read More on on that Topic: […]

  14. disable screenshot

    … [Trackback]

    […] Read More on that Topic: […]

Leave a Comment