Bitcoin (BTC) MACD Signal Flips Bullish For First Time in 17 Weeks

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In Brief
  • Bitcoin is approaching the long-term $43,000 resistance area.

  • BTC is following an ascending support line.

  • The price has broken out from a short-term descending resistance line.

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The price of Bitcoin (BTC) has been increasing since March 14 and has shown preliminary signs of a potential bullish rally.

Bitcoin increased during the week of March 13-20, creating a bullish candlestick and negating much of the previous week’s long upper wicks. The price is now slightly below the $43,000 resistance area, which has been in place since the beginning of the year.

Besides the bullish candlestick, another important bullish sign is the higher momentum bar (green icon) created in the MACD. The MACD is an indicator created by short and long-term moving averages (MA), and this means that the short-term MA is gradually gaining momentum relative to the long-term average.

This was the first higher momentum bar (green icon) after 17 consecutive lower bars(red icon).

The previous time this occurred was in August 2021, when BTC initiated the upward move toward the current all-time high price reached in November 2021.

Ongoing BTC support

The daily chart shows that BTC has been trading above an ascending support line since Jan. 22. It bounced at the line on March 14 and created a bullish engulfing candlestick (green icon). 

Similar to the weekly time-frame, technical indicators are showing bullish signs. The RSI is above 50 and the MACD has nearly crossed into positive territory (green circle).

The latter is extremely important since the two previous times this occurred, a considerable upward move followed that led to the current all-time high price.

Short-term movement

Finally, the two-hour BTC chart shows that the price has broken out from a descending resistance line (red circle) which previously had been in place since the beginning of March.

On March 21, BTC bounced at the 0.382 Fib retracement support level and created a long lower wick (green icon).

The main resistance area is found at $42,600. A breakout above this level would likely cause the price to spike rapidly. However, the true wave count still remains unclear.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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