A popular crypto analyst known for calling the Bitcoin (BTC) May 2021 collapse says a historically accurate indicator has flipped bullish.
Pseudonymous analyst Dave the Wave tells his 125,600 Twitter followers that Bitcoin’s weekly moving average convergence divergence (MACD) has crossed below its “zero-line.”
Previous MACD crosses below that line in 2012, 2015 and 2019 preceded huge bullish price moves, according to a chart shared by the analyst.
The MACD is a trend-based momentum indicator that depicts the relationship between two moving averages of an asset and is used by traders to pinpoint reversals.
Bitcoin’s MACD cross below the zero-line also happened in accordance with BTC being in an oversold position, similar to what took place in 2019, according to Dave the Wave.
BTC is trading at $22,364 at time of writing. The top-ranked crypto asset by market cap is up nearly 3% in the past 24 hours and more than 13% in the past seven days. Bitcoin remains down more than 67% from its all-time high of more than $69,000, which it hit last November.
Dave the Wave also says he’s looking at the MACD on the monthly chart, which he notes is flashing a bullish signal as well.
“Though the month has not closed yet, a very good chance that we’ll also see the first contracting histogram on the Bitcoin monthly chart. Previously, after the first one, the histograms continued to strengthen… Bullish.”
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