Bitcoin Price Indicator Turns Bullish for First Time in 8 Months
The list of indicators signaling a long-term bullish reversal in bitcoin (BTC) continues to grow with each passing week.
The latest to join the list is the MACD histogram, which has moved above zero – turned bullish – for the first time since January. The MACD, which oscillates above and below the zero line, is one of the most popular technical indicators used to determine a trend's reversal and momentum.
A bearish-to-bullish trend change is confirmed when the histogram moves above the zero line. On the other hand, a bearish reversal is confirmed when it dips below zero.
The bullish turn of the MACD adds credence to BTC's strong defense of the psychological support of $6,000 in the last 10 weeks.
Further, it validates bearish exhaustion indicated by BTC's long-tailed monthly candle and the record low net shorts in the BTC futures market.
At press time, BTC is trading at $7,320 on Bitfinex, representing a 0.8 percent appreciation on a 24-hour basis.