Technical indicators suggest Bitcoin is poised for a rally based on historical price patterns. Cryptocurrency analyst Thescalpingpro reported that the moving average convergence/divergence (MACD) crossed the key bullish indicator for the second time in history.
It is worth noting that such an event occurred only once in the history of Bitcoin, back in 2016. This turning point was followed by a significant bull run that significantly increased the price of Bitcoin over the next year.
A strong bullish MACD cross occurs when it crosses the zero line. In 2016, the MACD crossed the bullish line below the zero line for the first time, triggering a bullish rally. Currently, in 2023, MACD has crossed the bullish line below the zero line for the second time,” he said.
The analyst acknowledged that with Bitcoin targeting $27,000, the indicator is signaling long-term trends. However, he cautioned that in the short term, investors should expect price fluctuations and sideways movement before a rally occurs.
“Remember, although the MACD signals a change in the long-term trend, short-term fluctuations are normal. Prices may move sideways or even decline slightly on LTF before the bull run begins,” he added.
The bullish upside could resume if Bitcoin is able to secure a sustained close above $28,233.