Bitcoin [BTC] has been trading well below its 2017 price, with its value also falling considerably due to the “crypto-winter”.
Despite bearish claims, however, the Moving Average Convergence Divergence [MACD] line, which indicates long-term momentum differences in a wide array of assets including cryptocurrencies is showing positive signs for the top cryptocurrency. This could indicate a possible escape for the coin from the bear market.
The weekly histogram’s bullish signs haven’t been seen since the close of January 2018 when Bitcoin was trading at over $13,000. The bullish signs projected by the MACD line were even more surprising because the histogram has been red for a long time.
Following the Bitcoin Cash [BCH] hard fork, Bitcoin dropped below the $6,000-mark, setting off a collapse. Soon, the market cap dropped by over $120 billion in a month, reaching a low of $100.7 billion in December.
Bitcoin’s price boomed to $4,200 on February 24 for the first time since the close of January, signaling an imminent bull run. However, the coin soon ran out of steam and BTC dipped below $4,000 within 24-hours with no prominent price increases.
According to the trend line, the last time the MACD weekly histogram was highly bullish was when the BTC price was moving from $13,000 to $20,000.
Many analysts claim that the MACD indicator can be used to pinpoint the “Bitcoin-Bottom” of the ongoing bear market. Twitter users, such as Dave the Wave, analyzed the rise and fall of the price of Bitcoin, and compared the present bear market to that of 2014-15. Like these analysts, many Chinese miners too are bullish on Bitcoin and the imminent halving in 2020.
Based on previous halvings and the associated price surges, many have reason to believe that these bullish signs could herald the beginning of another crypto-boom.
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