The founders of analytics platform Glassnode say a key indicator is suddenly bullish again for Bitcoin (BTC).
Glassnode co-founders Jan Happel and Yann Allemann, who share the handle Negentropic on social media platform say An indicator that predicted Bitcoin’s massive rally to kick off the year could now signal that another big move higher is imminent.
“The MACD (moving average convergence divergence) crossover prepares Bitcoin for the next strong upward move. In January 2024, BTC reached a low. It broke out of a descending wedge and the MACD gave us a bullish crossover. On April 19, 2024, BTC reached a new low after a descending wedge decline. We now have a bullish crossover on MACD. Will we see a strong rally again?
The MACD is a technical indicator that measures the momentum of a trend. Looking at the analyst chart, they also suggest that Bitcoin is printing a bullish flag pattern, which indicates that BTC is likely moving higher.
Analysts also say Short-term Bitcoin price volatility is likely with short-lived dips.
“BTC’s potential trajectory may provide buying opportunities on dips. BTC’s 50-day exponential moving average (EMA) near $62,000 provides potential support, targeting $72,000 for a rebound. Shorter EMAs signal a buying bias, while longer EMAs suggest a selling bias. Given BTC’s recent significant gains of 92% in six weeks, market behavior may reflect a period of absorption of these gains. Using short-term dips for strategic buying opportunities is prudent in this phase of consolidation within a broader uptrend.
Bitcoin is trading at $64,015 at the time of writing, down slightly over the past 24 hours.
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