Bitcoin price has been unable to get back to $50,000, but with momentum at its back for the first time on weekly timeframes since March, the top cryptocurrency might blast right on through it.
Here’s a closer look at the significant bullish crossover brewing, but also what crypto investors might need to beware of if the market continues to consolidate further.
Bitcoin Momentum Indicator Crosses Bullish For First Time Since ATH
There is a battle of the words waging on across the crypto community – a fierce debate over if Bitcoin has started another bear market, or if the bull market has final leg up ahead.
Only one side of the trade will be right in the end, but which? Time will decide, but in the meantime analysts are trying to determine the highest probability direction the top cryptocurrency goes next.
Related Reading | What Bear Market? Bulls Now “In Control” Over Every Bitcoin Timeframe
Trend strength indicators suggest that bulls are in control, but momentum has been in bear’s favor since the peak in late March and early April 2021.
Around that time, Bitcoin price was trading around the current all-time high of $65,000, when the LMACD crossed bearish and the downtrend first began. After last night’s weekly close, however, things have flipped back bullish for the first time since.
Weekly momentum has crossed bullish above the zero line | Source: BTCUSD on TradingView.com
Pivotal Point In Crypto Market Cycle Is Clear With LMACD
The LMACD is the logarithmic version of the Moving Average Convergence/Divergence indicator and better accurately represents momentum in Bitcoin price on the log scale.
Although the signal is indeed bullish, Bitcoin bulls are not yet out of the woods. Such crossovers are less reliable when markets are consolidating, and depending on the macro climate, crypto could move sideways a lot longer like it did in late 2019 and 2020.
Crossovers with consolidation are less reliable | Source: BTCUSD on TradingView.com
At that point, however, there was still leftover bear market resistance to contend with, which doesn’t exist today. The picture above also shows that the LMACD remains above the zero line, which suggests the asset is bullish in and of itself. On the last two of the four bullish crossovers were above the zero line, and only the third signal so far that produced a significant rally. How will the fourth finish?
Related Reading | Proof-of-Work: Bitcoin Back Programs That Put Your Money To Work For You
It is important to note, however, that crossovers tend to be hard fought. Take the chart on the lower right, for example. The monthly price chart opened bearish just like the weekly opened bullish, but there is an ongoing struggle between the two opposing market forces: buyers and sellers.
Both the daily and monthly are also at inflection points | Source: BTCUSD on TradingView.com
The daily LMACD on the left hand side also warns of a potential bear cross on lower timeframes, which could put the bullish crossover on the weekly in jeopardy and the bearish crossover on monthly timeframes deeper into the red.
What the critical momentum indicator appears to suggest, is that the crypto market is at a major inflection point based on momentum, and could explode in one direction or another depending on what happens in the next two weeks ahead as August comes to a close.
#Bitcoin crosses bullish on the weekly LMACD while above the zero-line. Bullish and bullisher. pic.twitter.com/5qUWnzLIWy
— Tony “The Bull” Spilotro (@tonyspilotroBTC) August 16, 2021
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
Bitcoin value has been unable to get again to $50,000, however with momentum at its again for the primary time on weekly timeframes since March, the highest cryptocurrency may blast proper on by means of it.
Right here’s a more in-depth take a look at the numerous bullish crossover brewing, but in addition what crypto buyers may must watch out for if the market continues to consolidate additional.
Bitcoin Momentum Indicator Crosses Bullish For First Time Since ATH
There’s a battle of the phrases waging on throughout the crypto group – a fierce debate over if Bitcoin has began one other bear market, or if the bull market has closing leg up forward.
Just one facet of the commerce will probably be proper in the long run, however which? Time will determine, however within the meantime analysts try to find out the very best chance route the highest cryptocurrency goes subsequent.
Associated Studying | What Bear Market? Bulls Now “In Management” Over Each Bitcoin Timeframe
Pattern power indicators counsel that bulls are in management, however momentum has been in bear’s favor because the peak in late March and early April 2021.
Round that point, Bitcoin value was buying and selling across the present all-time excessive of $65,000, when the LMACD crossed bearish and the downtrend first started. After final night time’s weekly shut, nonetheless, issues have flipped again bullish for the primary time since.
Weekly momentum has crossed bullish above the zero line | Supply: BTCUSD on TradingView.com
Pivotal Level In Crypto Market Cycle Is Clear With LMACD
The LMACD is the logarithmic model of the Shifting Common Convergence/Divergence indicator and higher precisely represents momentum in Bitcoin value on the log scale.
Though the sign is certainly bullish, Bitcoin bulls usually are not but out of the woods. Such crossovers are much less dependable when markets are consolidating, and relying on the macro local weather, crypto may transfer sideways quite a bit longer prefer it did in late 2019 and 2020.
Crossovers with consolidation are much less dependable | Supply: BTCUSD on TradingView.com
At that time, nonetheless, there was nonetheless leftover bear market resistance to cope with, which doesn’t exist immediately. The image above additionally exhibits that the LMACD stays above the zero line, which suggests the asset is bullish in and of itself. On the final two of the 4 bullish crossovers have been above the zero line, and solely the third sign to date that produced a big rally. How will the fourth end?
Associated Studying | Proof-of-Work: Bitcoin Again Applications That Put Your Cash To Work For You
It is very important word, nonetheless, that crossovers are usually arduous fought. Take the chart on the decrease proper, for instance. The month-to-month value chart opened bearish identical to the weekly opened bullish, however there may be an ongoing battle between the 2 opposing market forces: patrons and sellers.
Each the each day and month-to-month are additionally at inflection factors | Supply: BTCUSD on TradingView.com
The each day LMACD on the left hand facet additionally warns of a possible bear cross on decrease timeframes, which may put the bullish crossover on the weekly in jeopardy and the bearish crossover on month-to-month timeframes deeper into the purple.
What the vital momentum indicator seems to counsel, is that the crypto market is at a significant inflection level based mostly on momentum, and will explode in a single route or one other relying on what occurs within the subsequent two weeks forward as August involves a detailed.
#Bitcoin crosses bullish on the weekly LMACD whereas above the zero-line. Bullish and bullisher. pic.twitter.com/5qUWnzLIWy
— Tony “The Bull” Spilotro (@tonyspilotroBTC) August 16, 2021
Comply with @TonySpilotroBTC on Twitter or by way of the TonyTradesBTC Telegram. Content material is instructional and shouldn’t be thought of funding recommendation.
Featured picture from iStockPhoto, Charts from TradingView.com
