Bitcoin (BTC) has recovered 25% from its multi-year low below $60,000, with momentum indicators flashing rare “buy” signals.
Key takeaways:
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Bitcoin’s MACD and RSI indicators forecast a sharp BTC price rally in the coming days.
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Bitcoin price must reclaim $78,000 in the coming days to sustain upward momentum.
Bitcoin’s MACD, RSI confirm “bull market is on”
Data from TradingView showed BTC/USD trading at $75,300, 4% below its 10-week high of $78,380 reached on Friday.
Despite this pullback, fueled by uncertainties over the US and Israel-Iran war, price indicators hinted at continued upside to come.
Analyzing the moving average convergence divergence (MACD) indicator in the weekly time frame, trader Sykodelic flagged a key bullish crossover, setting Bitcoin up for an upward run.
Related: BTC price due ‘new highs:’ Five things to know in Bitcoin this week
“Not only do we have a 1W MACD bullish cross and break of trend, we have it from the lowest point the MACD has ever dropped to,” analyst Sykodelic said in a recent post on X, adding:
Previous instances show that Bitcoin tends to rise sharply when the MACD line (blue) crosses above the signal line (orange).
This ultimately has led to 340%-380% BTC price gains, as seen in 2018-2019 and 2022-2023.
BTC/USD weekly chart. Source: Cointelegraph/TradingView“A big move usually follows whenever this weekly MACD bullish cross happens,” analyst Mikybull Crypto said in a recent post on X.
Meanwhile, the relative strength index, or RSI, has now recovered to 43 from 21 in mid-February. When combined with a buy signal on the MACD, the picture begins to resemble previous cycles.
In a recent video posted on X, trading resource Material Indicators said that the weekly RSI holding above the 41 level was among the “macro things that need to happen to say a validated bull market is on.”
Previous occurrences in 2023, 2020 and 2019 have led to 660%, 1,600% and 316% BTC price rallies, respectively.
Other Bitcoin analysts suggest that sustained spot market buy volume and consistent inflows to the Bitcoin ETFs are the necessary components required for a rally to new highs.
Bitcoin must reclaim $78,000 next
As Cointelegraph reported, Bitcoin’s bullish case hinges on flipping the resistance at $78,000 into support, where the true market mean currently sits.
Analyzing Bitcoin’s price action on lower time frames, Telegram trading resource Technical Crypto Analyst said that after reclaiming the $70,000 level, the BTC/USD pair is “now pushing into a major supply zone around 75K–78K, which is acting as resistance,” adding:
BTC/USD four-hour chart. Source: Technical Crypto AnalystFellow analyst Bitcoinsensus said failure to break above $78,000 would suggest that the latest rally was a “possible bull trap,” as seen in previous failed breakouts.
BTC/USD daily chart. Source: BitcoinsensusAs Cointelegraph reported, a close above the $76,000-$78,000 area would confirm that the buyers are in control, clearing the path for a potential rally to $84,000.
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Source: https://cointelegraph.com/news/bitcoin-metrics-line-up-bull-signals-78k-btc-price-level-beat?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
