has once again become the subject of water cooler talk at , following a massive price surge at the beginning of April, that saw the value of the leading crypto by market cap rise by over .
The powerful move created a higher high on the charts, and caused some technical analysis indicators to . Another indicator, the MACD, is showing that bitcoin buying is currently overextended. A prominent crypto analyst known for his long-term analysis using the MACD, says the indicator being overextended is bullish, but does suggest that consolidation is “due.”
Long-Term Trend Change Indicator Is Bullish, But Suggests “Consolidation” is “Due”
According to crypto analyst , who often shares long-term log scale charts of bitcoin price fluctuations dating back to before the 2014-2015 bull run, the MACD or Moving Average Convergence Divergence indicator is reading as overextended. The trader calls this a bullish sign, signaling that buyers are out in full force.
The good news is an over-extended MACD is bullish. That said, when it is this over-extended it’s due a consolidation.
— dave the wave (@davthewave)
As Dave the Wave shows on his MACD chart’s histogram, each time the MACD became overextended, a period of price consolidation soon followed. The crypto analyst expects similar behavior to occur in markets in the coming days to weeks.
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In the past, the long-term crypto chartist has used the MACD – a long-term indicator used to spot important trend changes – to help him . According to his past analysis, he concludes the bottom is indeed behind us and that the.
Using a logarithmic growth curve, Dave the Wave has demonstrated how , with an over $7.7 trillion dollar market cap. For comparison’s sake, bitcoin’s market cap is currently at just under $100 billion.
Most crypto investors view bitcoin as a long-term investment that could pay handsomely, with the majority of them believing that some day the price per BTC could reach $100,000 or even “millions” of dollars each.
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bitcoin had recently surged in price as much as 25% over the past month, closing its monthly candle above resistance turned support. The crypto market is at a critical point, and whichever way it turns next could determine the trend for the months to come.
Should bitcoin break and close above powerful resistance at $6,000, the market may enter a new bull market and the days bears controlled the price of bitcoin will have come to an end.
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Published at Thu, 02 May 2019 00:01:48 +0000
