Bitcoin’s weekly MACD just crossed bullish for the first time in 11 months

Aug 18, 2021 | CoinTelegraph News | 0 comments

bitcoin’s-weekly-macd-just-crossed-bullish-for-the-first-time-in-11-months

MACD is green for the first time since Bitcoin’s all-time highs, but a correction is the “most obvious” first step, one trader says.

Bitcoin (BTC) kept traders guessing later on Aug. 18 as one forecast said that a $40,000 dip would be the “most obvious” next move.

BTC/USD 1-hour candle chart. Source: TradingView.com

$37,000 is last chance saloon for BTC

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it ranged around the $45,000 mark on Wednesday, with no clear direction on lower timeframes.

A dip to $44,200 earlier on the day reversed upwards, but the pattern for the pair remained a cycle of lower highs on the hourly chart.

Therefore, Cointelegraph contributor Michaël van de Poppe concluded, a higher low construction marking a corrective phase could appear “quite quickly.”

“The most obvious case for the markets right now is that we’re going to have that corrective move somewhere towards the region of $39,000-$42,000,” he said in his latest YouTube update.

Van de Poppe added that the line in the sand for bulls was around $37,000, this marking the last higher low construction supporting Bitcoin in its current trading zone.

A “crucial breaker” to the upside, he subsequently said, was the $45,600 area, which at the time of writing was just several hundred dollars away.

MACD back for first time since Bitcoin all-time highs

Zooming out, and context provided bulls with some much-needed respite thanks to one key indicator flashing “buy.”

Related: 3 ways this Bitcoin bull run is different than late 2020

That came in the form of the weekly moving average convergence/ divergence (MACD) tool, which as of Aug. 8 had flashed green for the first time since Bitcoin was at its all-time highs of $64,500 in April.

MACD is a classic interpreting method for charting an asset’s overall trajectory. The last time such a green phase began was in early Q4 2020, corresponding with the springboard for the latest bull run to get going.

BTC/USD 1-week candle chart (Bitstamp) with MACD. Source: TradingView

As popular Twitter commentator BTC Archive noted last week, a similar green event in 2019 led to considerable price appreciation.

News Source from CoinTelegraph.com

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