finbold.com
The value of Bitcoin (BTC) has recently experienced a correction, but the maiden cryptocurrency continues to trade in the familiar range below $30,000. Meanwhile, technical indicators suggest that Bitcoin is poised for a rally based on historical price patterns.
In this context, a cryptocurrency analyst using the pseudonym Thescalpingpro pointed out in an X (formerly Twitter) post on October 15 that Bitcoin’s Moving Average Convergence Divergence (MACD) has just undergone its second bullish cross after crossing below the zero line.
It’s worth noting that such an occurrence has only happened once before in the history of Bitcoin, back in 2016. This pivotal moment was followed by a significant bull run that substantially increased Bitcoin’s price the following year.
“A strong MACD Bullish Cross occurs when it crosses below the zero line. In 2016, MACD crossed bullish below the zero line for the first time ever, triggering a bull run. Currently, in 2023, MACD crossed bullish below the zero line for the second time,” he said.
The analyst acknowledged that as Bitcoin targets the $27,000 mark, the indicator signals long-term trends. However, he cautioned that in the short term, investors should expect price fluctuations and sideways movement before a rally takes place.
“Remember, while MACD signals long-term trend change, short-term fluctuations are normal. Prices might move sideways or even go slight lower on the LTF, before the Bull Run begins,” he added.
Bitcoin targeting $27,000
As the market awaits a potential Bitcoin price rally, the maiden cryptocurrency recently dipped below the $27,000 level, reaching a new two-week low. It managed to regain some ground but still struggled to break through the $27,000 barrier.
While technical indicators are likely to influence Bitcoin’s valuation, the asset contends with external factors such as macroeconomic elements and regulatory developments, notably the approval of a spot Exchange-Traded Fund (ETF) by the Securities and Exchange Commission (SEC).
At the moment, as reported by Finbold, the potential for a bull run could be reignited if Bitcoin can secure a sustained close above $28,233.
Bitcoin Price Analysis
At the time of writing, Bitcoin traded at $26,898, reflecting a nearly 4% decline on the weekly chart.
In terms of technical analysis, Bitcoin is currently dominated by bearish sentiment. A one-day summary from TradingView suggests a ‘sell’ rating at 14 while moving averages indicate a ‘strong sell’ at 12. Oscillators, on the other hand, are signaling a ‘buy’ at 4.
Based on recent price movements, Bitcoin’s potential to reach new all-time highs hinges on its ability to maintain a price above the $27,000 resistance level.
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