A bullish indicator for textbooks, the last release of which in mid-February contributed to Bitcoin’s price surge to its record high, has flashed again.
The signal known as the MACD Bull Cross occurs when the output of the difference between the exponential coverage of a 26 and 12 period asset rises above the 9 period exponential moving average known as the signal line. Traders interpret the crossover as a sign of the potential price increase for the asset.
Bitcoin confirmed the MACD Bull Cross this Tuesday in its one-day timeframe. Market research portal TradingShot highlighted the crossover’s ability to expand the cryptocurrency’s bullish bias, citing its latest formation, which increased the BTC / USD exchange rate by 74 percent. It added that the pair could climb to $ 65,000 should the fractal perform as intended.
The record high target was met after a confluence was formed between the MACD bull cross and a Fibonacci retracement chart. As shown in the table above, the fib retracement is formed from a swing high level to a swing low level, creating a series of up and down targets side by side.
The MACD Bull Cross formation followed in February with a breakout move above the 0.5 Fibonacci retracement line. The upward movement grew until it hit the Fib line of 2.23. BTC / USD then pulled back, treating the 1-Fibonacci retracement line as their session floor.
At the beginning of March, Bitcoin had passed the 0.5 Fib mark and is now aiming for a longer upward trend. With the Bull Cross support, TradingSpot expects the cryptocurrency to hit – at least – the 1.5 Fib line, which is in line with the resistance level of $ 65,000.
Meanwhile, the Fib level of 2.23 is above $ 70,000 this time around.
Bitcoin Trade Setup
The BTC / USD exchange rate is breaking out of its bullish flag pattern. The structure represents the pair’s recent decline in supply, confirmed by a descending channel. Meanwhile, a breakout above the channel’s resistance will cause the price to rise by as much as the level of the uptrend that formed in front of the flag.
With that, BTC / USD is on the way to $ 70,000. Meanwhile, the levels represented by the pitchfork pattern offered potential levels of retreat and rebound as price continued its upward trend. The next target is above the previous record high of $ 58,367.