Bitcoin (BTC) Prints Super-Rare Bullish Signal on Monthly Time Frame
As Bitcoin (BTC), the largest cryptocurrency, struggles with the pressure of bears, its positive momentum becomes sufficient to trigger a very rare “golden cross” on an important time frame. A seasoned analyst explains why this is a paramount moment for the entire bullish cycle of BTC.
Bitcoin (BTC) monthly MACD turned bullish after four years
Today, on June 30, 2023, Bitcoin (BTC) registered a third “golden cross” in its history for its moving average convergence/divergence indicator on a 30-day time frame. This fact was noticed by pseudonymous cryptocurrency analyst who goes by @CryptoJelleNL on Twitter.
#Bitcoin’s monthly MACD has flipped bullish!
This signal has happened twice before, at the foot of the two previous bull runs. pic.twitter.com/nuNEhzRyJY
— Jelle (@CryptoJelleNL) June 30, 2023
The MACD is considered to be a reliable trendline momentum indicator. It is designed to demonstrated the relationship between two exponential moving averages (EMAs) of an asset’s price. Namely, the trendline is calculated by subtracting the 26-period EMA from the 12-period EMA.
A bullish “cross” on MACD on a monthly chart is very rare for Bitcoin (BTC). Previously, it was only registered twice: in late 2015 and in June 2019. Both times, this signal was an indicator of an upcoming bullish run. In the 2015-2016 run, the Bitcoin (BTC) price jumped by 4,000% after this signal occured. In the 2019-2021 run, the price of the orange coin increased by 400%.
However, in the short-term perspective this indicator is a crucial “sell” signal, as the analyst stresses:
2019’s signal happened around the peak of the mid-cycle rally. Something to keep an eye on!
Some commentators, below this statement, opined that Bitcoin’s (BTC) monthly candle is not closed yet, so the indicator might not be accurate.
Bitcoin (BTC) plummets by 4.1% in no time: Reason
At the same time, Bitcoin (BTC) disappointed many bulls with its recent dropdown. A few hours ago, after the SEC characterized the Bitcoin ETF filings by BlackRock and Fidelity as “inadequate,” Bitcoin (BTC) plummeted.
In almost no time, it dropped from $31,100 to $29,800 on major spot trading platforms. As such, the first cryptocurrency lost over 4.12% in a few minutes.
In total, over $3 million in BTC positions were liquidated in the last hour, and 90% of them were longs. By press time, the price erased losses partially and stabilized over $30,050.