Bitcoin price analysis
A digital currency analyst who became famous for predicting the fall of Bitcoin in 2021 says that Bitcoin has entered a new phase, according to a technical analysis indicator that has shown accurate performance in the past.
To Report Daily Hodel, nicknamed “Dave the Wave”, told his 125,600 Twitter followers that Bitcoin’s weekly Logarithmic MACD Indicator (LMACD) has formed a bullish crossover below the zero line.
According to the chart that this analyst shared on his Twitter, the MACD indicator had formed a similar intersection in 2012, 2015 and 2019, before the start of the Bitcoin price growth trend, below the zero level.
MACD is a trend-based momentum indicator that depicts the relationship between two moving averages of an asset. Traders use this indicator to identify trend change points (upward or downward).
According to Dave de Vio, given that Bitcoin is in an oversold position, the formation of a bullish MACD crossover below the zero line is similar to what happened in 2019.
At the time of writing this analysis, Bitcoin is trading in the price range of $20,400 with a decrease of 8.8% in the last 24 hours (after the publication of the August inflation rate in the United States) and an increase of 8.6% in the last seven days. The value of Bitcoin has decreased by more than 67% compared to its highest price of $68,789 in November last year (1400).
This analyst further points out that the signal of Bitcoin entering the upward phase can be seen by examining the logarithmic MACD indicator in the monthly view.
Dave DeVio says:
Although the monthly candle has not yet closed, there is a good chance we will also see the first contraction histogram (indicator of trend reversal) on the monthly Bitcoin chart. In earlier situations, after the first signal, the histograms continued to strengthen their upward momentum.