Bitcoin has been in a bear market for more than two full years, but according to a long-term trend and momentum signal indicator, the very first crypto currency is about to officially enter a bull market for the first time since the crypto bubble burst.
MACD signals that Bitcoin is about to officially enter bull territory
As the saying goes, what goes up must also come down again. And this is exactly what happened to Bitcoin and the rest of the crypto market after the crypto bubble collapsed in 2017.
After the meteoric rise of Bitcoin reached the world, investors flocked to the rising asset in a FOMO-driven rally. Feverish buying activity drove the price of the crypto currency even higher, with the parabolic rise reaching an all-time high of nearly $20,000 on December 17, 2017.
Since then, however, crypto investors have seen pretty much everything go downhill.
Bitcoin corrected by more than 80%, a common target for the repatriation of assets that have become parabolic. Even worse was the situation with the Altcoins, which lost over 90% of their all-time high.
But just as the year began anew, Bitcoin and Altcoins recovered, escaping the downward trend and posting gains of over 40% in value in less than 30 days.
The bullish momentum has turned up some important trend-following technical analysis indicators, which not only signals that Bitcoin’s rally should continue in the near future, but also “officially” signals the beginning of the next uptrend.
For this to happen, however, Bitcoin only needs to make a few positive moves on the monthly MACD. According to the indicator, Bitcoin is just below the zero line and is moving up. Once Bitcoin crosses the zero line of the monthly MACD, the bull market could gain momentum.
While the indicators are beginning to signal that the crypto winter will soon be over, the crypto currency still has some important levels to overcome. Bitcoin has yet to regain highs above $10,000 on the weekly price charts, and is also struggling with resistance at $14,000.