Bitcoin Gets Yet Another Bullish Signal as Prices Near $70K

As a seasoned analyst with over two decades of experience under my belt, I’ve seen my fair share of bull and bear markets. The recent bullish flip of the widely-tracked momentum indicator for Bitcoin, specifically the Moving Average Convergence Divergence (MACD), is reminiscent of past market movements.

An indicator related to Bitcoin signaled seller fatigue in early September, but now it’s showing optimism again, supporting the argument for prices climbing over $70,000.

The MACD line, a tool for technical analysis used to assess trend direction and shifts, recently turned positive on the weekly chart for the first time since April, as seen on TradingView. This indicates a potential resurgence of positive momentum, suggesting a more optimistic outlook for Bitcoin’s price fluctuations between $50,000 and $70,000, which may signal a bullish conclusion to its ongoing back-and-forth trading.

The favorable technological perspective aligns with the widespread belief that the Federal Reserve’s inclination towards interest rate reductions, the increasing likelihood of a Republican candidate perceived as crypto-friendly, Donald Trump, winning the November 5th U.S. election, and the weakness in the safe-haven Japanese yen could propel Bitcoin to reach at least $100,000 before December ends.

Here’s a simpler way to explain it:

This particular indicator is closely monitored, and its movement compared to the cryptocurrency’s price during the early part of September indicated a potential end to the downward trend.

Bitcoin has seen a significant surge of approximately 30% since it dipped below $53,000 in early September. On Monday, the dominant cryptocurrency by market capitalization reached a high of $69,500 during the Asian trading session.

The most recent positive MACD signal, much like the one seen on the “line break chart” previously, implies that bulls could potentially gain control and surpass the $70,000 level for the first time successfully, after numerous previous attempts since the beginning of the year.

In October of last year, a MACD bull crossing occurred as bitcoin surpassed its longstanding $30,000 barrier, eventually peaking at a new record high above $73,000 in March of this year. This particular bull crossing in late 2022 signified the bottom of the bear market.