While Bitcoin (BTC) has struggled, experiencing two plunges of 7% and 3%, respectively, the weekly chart of the cryptocurrency is on the verge of printing a bullish signal. The signal in question was last seen prior to BTC’s 288% surge from the mid-$3,000s to $14,000 in a few months’ time.
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Key Bitcoin Price Signal That Preceded Rally to $14,000 About to Flash
Trader CryptoParadyme noted that with the Bitcoin price’s latest close on Sunday, the weekly trend-following Moving Average Convergence Divergence (MACD) indicator is on the verge of printing a bullish crossover, with the MACD line just smidgens away from crossing above the signal line.
— Dyme (@CryptoParadyme) January 20, 2020
So why is this relevant? Well, as pointed out in the below chart from NewBTC, the last time this technical signal was seen was in February of 2019, just months prior to a massive price explosion that brought BTC from the depths of the $3,000s to as high as $14,000 in a few months’ time.
Also, previous bullish crossovers in the weekly MACD led to macro reversals like the one seen early last year. Of course, there are fakeouts of the indicator, but there are other signs that suggest upside is imminent.
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Not Only Positive Sign
It isn’t only the forming MACD cross that has analysts bullish on Bitcoin.
Per previous reports from NewsBTC, Dave the Wave, a cryptocurrency trader who in the middle of last year called that Bitcoin was going to decline to the $6,000s when prices were well above $10,000, recently argued that BTC is on track to hit $11,500.
Pennant starting to look more likely with price staying high here. Freebie from my alts page… pic.twitter.com/IZQAJIrgf0
— dave the wave🌊🌓 (@davthewave) January 17, 2020
Backing this prediction, Dave looked to a confluence of factors:
- Bitcoin recently broke above a descending channel that has constrained price action for more than six months, marking a large win for bulls.
- BTC rallying to $11,500 would satisfy a historical chart pattern.
- The weekly Moving Average Convergence Divergence (MACD) is starting to trend higher once again, which was a signal seen in 2015/2016 as BTC moved from a bear market to bull.
Not to mention, as pointed out by cryptocurrency analyst Thies, according to TradingView’s Total2 trading pair (all digital assets sans Bitcoin), “last week alone showed the highest buying volume for the altcoin markets ever recorded.”
New weekly for #TOTAL2 opened just over an hour ago now.
That said, last week alone showed the highest buy volume for the alt markets ever recorded on @tradingview.
As many may know, this is significant in market dynamics and suggests a true bottom established. Take note. pic.twitter.com/9wFjxAXqVy
— Crypto Thies (@kingthies) January 20, 2020
While some say that this data masks reality in part, there is no doubt there has been a lot of buying pressure in the cryptocurrency markets as of the past week, hence the absolute explosion in the price of Ethereum Classic, Bitcoin Satoshi’s Vision, and many, many others.
Related Reading: Crypto Tidbits: Bitcoin Hits $9,000, Institutional Cryptocurrency Investment Spikes, NBA Team Uses Ethereum
Featured Image from Shutterstock
