Glassnode, the analytics platform, has revealed that a key indicator for Bitcoin is once again showing a bullish signal. Co-founders Jan Happel and Yann Allemann, known as Negentropic on social media, believe that this indicator, which accurately predicted Bitcoin’s rally earlier this year, is now indicating that another significant upward movement is imminent.
The indicator in question is the moving average convergence divergence (MACD) crossover. Happel and Allemann point out that in January 2024, Bitcoin reached a low point but then rallied out of a descending wedge pattern, coinciding with a bullish cross-over on the MACD. Similarly, on April 19th, 2024, Bitcoin reached another low point after declining in a descending wedge, and now the MACD is showing a bullish cross-over once again. This suggests that Bitcoin may experience another strong rally in the near future.
The MACD is a technical indicator used to measure the momentum of a trend. The analysts also note that Bitcoin appears to be forming a bullish bull flag pattern, further indicating that the price of Bitcoin is likely to increase.
However, the analysts also anticipate short-term price volatility for Bitcoin, including temporary dips. They suggest that these dips may present buying opportunities, particularly if Bitcoin’s 50-day exponential moving average (EMA) near $62,000 provides support. They target a rebound to $72,000. The analysts explain that shorter EMAs indicate a tendency to buy, while longer EMAs suggest a preference for selling. Given Bitcoin’s recent substantial gains, they believe that the market may need time to absorb these gains. Therefore, they advise strategic buying during this consolidation phase within the broader bullish trend.
At the time of writing, Bitcoin is trading at $64,015, experiencing a slight decline in the past 24 hours.
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