While the weekend saw the Bitcoin price action hovering in a meager $150 range with an unexpected tranquillity throughout the tense week of important macroeconomic events – a phenomenon akin to calm before a storm, market participants still nurture a glimmer of hope. They eagerly anticipate a potential bullish cross on Bitcoin’s moving average convergence/divergence (MACD) indicator – a long-term bull signal that has been the harbinger of upside potential, historically.
However, the excitement in the market is tempered by a rational skepticism. Despite the potential bullish signal, a sudden volatility could precipitate a breakdown. The potential for dramatic shift is implied by the observation that the price action has been soaking in stagnation, actively defying its inherently volatile nature. The longer this compressive state continues, the more significant the impending price movement will be.
Echoing a similar situation experienced at the start of the year, before Bitcoin climbed up by 70% in Q1, the current scenario has instigated anticipation for a similar surge. Intriguingly, a similar sentiment is echoed by observations on the Binance Bitcoin order book. The book witnessed substantial buying pressure from whales combined with increasing resistance near the $30,000 mark.
On the contrary, the market’s jubilance should be considered with a pinch of salt as some experts point out that the impending cross “doesn’t mean btc is already out of its summer correction mode”. A historical perspective shows a monthly MACD cross in late 2015 did precede Bitcoin’s climb to a $20,000 all-time high two years later, while another cross event in August 2021 led to Bitcoin’s current all-time highs. Pertinently, while monthly MACD crosses can often herald positive future trends, lower timeframe MACD crosses might sometimes demonstrate false alarms.
In conclusion, amidst prevailing market uncertainties and compressed price action, stakeholders in the cryptocurrency market exude a paradoxical aura of cautious anticipation, powered by a potential MACD cross event. Remember, every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: Cointelegraph
