The founders of the analytics platform Glassnode say one key indicator is suddenly flashing bullish again for Bitcoin (BTC).
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say an indicator that predicted Bitcoin’s massive rally to kick off the year may now be signaling another big move to the upside is imminent.
“MACD (moving average convergence divergence) crossover sets Bitcoin up for the next strong move higher. In January 2024, BTC put in a low. It rallied out of a descending wedge and MACD gave us bullish cross-over. On April 19th 2024, BTC put another low in after declining in descending wedge. Now we have a bullish cross-over on MACD. We will see a strong rally unfold again?”
The MACD is a technical indicator that gauges the momentum of a trend. Looking at the analysts’ chart, they also suggest that Bitcoin is printing a bullish bull flag pattern, which indicates BTC is likely heading higher.
The analysts also say near-term Bitcoin price volatility is likely with short-lived dips.
“BTC potential trajectory may offer buy-the-dips opportunities. BTC’s 50-day exponential moving average (EMA) near $62,000 provides potential support, targeting $72,000 for a rebound. Shorter EMAs signal a tendency to buy, while longer EMAs suggest a preference for selling. Given BTC’s recent significant gains of 92% in six weeks, the market behavior may reflect a period of absorbing those gains. Utilizing short-term dips for strategic buying opportunities is prudent in this consolidation phase within the broader bullish trend.”
Bitcoin is trading for $64,015 at time of writing, down slightly in the last 24 hours.
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