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• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Market Wrap: Crypto Mining Stock Hut 8 Jumps on Unusually High Trading Volume

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Bitcoin Halving Searches on Google Hits All-Time Highs

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: Stablecoin Surge Might Herald Bitcoin Binge
• Bitcoin Options Trading Hits One-Month High as Price Turns Bullish

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Bitcoin Halving Searches on Google Hits All-Time Highs

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: First Mover: Stablecoin Surge Might Herald Bitcoin Binge

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Options Trading Hits One-Month High as Price Turns Bullish
• Market Wrap: Ether Making Big Gains as Stablecoins Proliferate on Ethereum

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Market Wrap: Ether Making Big Gains as Stablecoins Proliferate on Ethereum

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Open Interest in CME Bitcoin Futures Rises 70% as Institutions Return to Market

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: Coronavirus Trillions Get Bitcoiners Wondering if Halving Still Matters
• Bitcoin Price Spikes Above $7.1K, Liquidating $23M on BitMEX

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Open Interest in CME Bitcoin Futures Rises 70% as Institutions Return to Market

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: First Mover: Coronavirus Trillions Get Bitcoiners Wondering if Halving Still Matters

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Price Spikes Above $7.1K, Liquidating $23M on BitMEX
• Ethereum Now Matches Bitcoin on One Key Metric

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: First Mover: Coronavirus Trillions Get Bitcoiners Wondering if Halving Still Matters

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Bitcoin Price Spikes Above $7.1K, Liquidating $23M on BitMEX

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Ethereum Now Matches Bitcoin on One Key Metric
• Market Wrap: Bitcoin Price Volatility Declines in Contrast to S&P 500

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Bitcoin Price Spikes Above $7.1K, Liquidating $23 Million on BitMEX

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Ethereum Now Matches Bitcoin on One Key Metric

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Market Wrap: Bitcoin Price Volatility Declines in Contrast to S&P 500
• Chainlink’s Link Token Outperforms Bitcoin as Business Wins Fuel Hype Cycle

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Market Wrap: Bitcoin Price Volatility Declines in Contrast to S&P 500

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Chainlink’s Link Token Outperforms Bitcoin as Business Wins Fuel Hype Cycle

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: Gold Is Crushing Bitcoin, but Inflation May Bring the Cryptocurrency a Boost
• More Investors Are Holding Bitcoin Ahead of the Halving, Data Suggests

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Chainlink’s Link Token Outperforms Bitcoin as Business Wins Fuel Hype Cycle

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: First Mover: Gold Is Crushing Bitcoin, but Inflation May Bring the Cryptocurrency a Boost

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• More Investors Are Holding Bitcoin Ahead of the Halving, Data Suggests
• Bitcoin Tests $7K as Spot Trading Volumes Subside to Normal Levels

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: First Mover: Gold Is Crushing Bitcoin, but Inflation May Bring the Cryptocurrency a Boost

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: More Investors Are Holding Bitcoin Ahead of the Halving, Data Suggests

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Tests $7K as Spot Trading Volumes Subside to Normal Levels
• Options Market Signals Doubt Bitcoin Price Will Rise After Halving

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: More Investors Are Holding Bitcoin Ahead of the Halving, Data Suggests

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Bitcoin Tests $7K as Spot Trading Volumes Subside to Normal Levels

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Options Market Signals Doubt Bitcoin Price Will Rise After Halving
• First Mover: Bitcoin Market Goes Into ‘Backwardation’ Despite Fed’s Trillions

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Bitcoin Tests $7K as Spot Trading Volumes Subside to Normal Levels

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Options Market Signals Doubt Bitcoin Price Will Rise After Halving

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: Bitcoin Market Goes Into ‘Backwardation’ Despite Fed’s Trillions
• Bitcoin Stuck Below $7K Even as Gold Surges to Over 7-Year High

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Options Market Signals Doubt Bitcoin Price Will Rise After Halving

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: First Mover: Bitcoin Market Goes Into ‘Backwardation’ Despite Fed’s Trillions

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Stuck Below $7K Even as Gold Surges to Over 7-Year High
• Bitcoin Drops as Traders See Bearish Signals in Futures Markets

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: First Mover: Bitcoin Market Goes Into ‘Backwardation’ Despite Fed’s Trillions

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Bitcoin Stuck Below $7K Even as Gold Surges to Over 7-Year High

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Drops as Traders See Bearish Signals in Futures Markets
• Crypto Long & Short: DeFi and Traditional Finance Are Forming an Unlikely Friendship

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: First Mover: Bitcoin Market Goes Into ‘Backwardation’ Despite Fed’s Trillions

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Bitcoin Stuck Below $7K Even as Gold Surges to 7-Year High

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Drops as Traders See Bearish Signals in Futures Markets
• Crypto Long & Short: DeFi and Traditional Finance Are Forming an Unlikely Friendship

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Bitcoin Drops as Traders See Bearish Signals in Futures Markets

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Crypto Long & Short: DeFi and Traditional Finance Are Forming an Unlikely Friendship

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Vaults: Developer Bryan Bishop Releases Prototype for Secure On-Chain Storage
• Bitcoin Ends Four-Week Winning Run With Drop Into Bear Territory

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Crypto Long & Short: DeFi and Traditional Finance Are Forming an Unlikely Friendship

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Bitcoin Vaults: Developer Bryan Bishop Releases Prototype for Secure On-Chain Storage

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Ends Four-Week Winning Run With Drop Into Bear Territory
• First Mover: Bitcoin’s Market Cap Eclipses Citigroup’s as Yellen Calls for Big-Bank Dividend Cuts

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Bitcoin Ends Four-Week Winning Run With Drop Into Bear Territory

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: First Mover: Bitcoin’s Market Cap Eclipses Citigroup’s as Yellen Calls for Big-Bank Dividend Cuts

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• More Profit-Taking? Bitcoin Price Sags 7% Ahead of Easter Weekend
• Coronavirus Has Erased 33% of Crypto Scammers’ Revenue: Chainalysis

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: More Profit-Taking? Bitcoin Price Sags 7% Ahead of Easter Weekend

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Coronavirus Has Erased 33% of Crypto Scammers’ Revenue: Chainalysis

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: As Fed Assets Top $6T, BitMEX Has Some Inflation-Busting Advice
• Profit-Taking Keeps Bitcoin in Tight Range as Fed Reopens Spigot

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: Coronavirus Has Erased 33% of Crypto Scammers’ Revenue: Chainalysis

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: First Mover: As Fed Assets Top $6T, BitMEX Has Some Inflation-Busting Advice

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Profit-Taking Keeps Bitcoin in Tight Range as Fed Reopens Spigot
• Bitcoin Garners New Users as Governments Flood World With Fiat

• The three-day chart MACD’s first bullish turn in over three months could bode well for bitcoin’s price, according to historical data. The cryptocurrency may challenge 2019 high above $13,800 before the year’s end.
• The immediate outlook, however, is bearish and prices could drop to $8,800 in the next day or two, with the daily chart reporting buyer exhaustion. Further, China’s state media has asked investors to avoid speculative behavior which could dampen trading.
• A pennant breakout on the hourly chart could yield a re-test of recent highs above $10,000, although that looks unlikely.

A widely-tracked bitcoin (BTC) price indicator has turned bullish for the first time in over three months, hinting that a move to yearly highs lies ahead.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend reversals and trend strength – has crossed above zero on the three-day chart, confirming a bearish-to-bullish trend change. A positive reading was last observed in the first half of July.

Seasoned traders may argue that the MACD’s bullish turn cannot be trusted, as it is based on moving averages (MAs) which are lagging indicators.

Related: First Mover: As Fed Assets Top $6T, BitMEX Has Some Inflation-Busting Advice

While that sounds logical, the histogram has a strong track record of predicting trend changes and big moves, as seen in the chart below.

The MACD crossed above zero in late December 2018, confirming a bottom had been made near $3,100 and remained in the bullish territory throughout the first quarter, even though bitcoin’s recovery rally remained capped above $4,000.

The cryptocurrency broke into a bull market on April 2 with a convincing move above a bearish lower high of $4,236 created on Dec. 24.

Related: Profit-Taking Keeps Bitcoin in Tight Range as Fed Reopens Spigot

The histogram fell below zero on Nov. 14 as prices breached the long-held support of $6,000. What followed was a sell-off to $3,100.

Going further back, the indicator’s bullish turn in Oct. 2017 was followed by a meteoric rise from $7,000 to $20,000. Meanwhile, a drop below zero in early January 2018 fueled a deeper slide in bitcoin’s price from $13,000 to $6,000.

So if history is a guide, the MACD’s latest bullish turn could see bitcoin breaking out of a four-month falling channel and challenging yearly highs above $13,800 before the year’s end.

Supporting the bullish case is another piece of historical data that says BTC picks up a strong bid six months ahead of the mining reward halving due in May 2020.

So far, however, the MACD’s move above zero has failed to be reflected in price gains. BTC is currently changing hands at $9,470 on Bitstamp, representing a 0.6 percent gain on a 24-hour basis, having faced rejection near the 100-day MA resistance at $9,625 during the Asian trading hours.

Notably, bitcoin failed to close above the 100-day MA for the third straight day on Tuesday, having faced rejection above $10,000 over the weekend. as seen below.

The repeated failure to hold onto gains above the 100-day MA indicates buyer exhaustion. A similar sentiment is echoed by Tuesday’s red candle with a long upper shadow.

As a result, the odds of BTC diving out of the contracting triangle, or pennant pattern, on the hourly chart are high. At press time, the lower edge of the pennant is located at  $9,260.

A breakdown, if confirmed, could yield a sell-off to the former resistance-turned-support of $8,820 (formerly a bearish lower high).

On the other hand, a high-volume pennant breakout, if confirmed, would imply a resumption of the rally from Friday’s low near $7,400 and will likely yield a quick break above $10,000.

China’s state media has called investors to stay rational and avoid speculative behavior. The warning has come after Monday’s sharp rise in blockchain-related stocks in China.

Investors poured money into bitcoin and blockchain-focused stocks after President Xi Jinping said last week that the world’s second-largest economy should accelerate its adoption of the blockchain technology.

The comments by China’s state media may force investors to scale back lofty expectations, leading to a price drop. A pennant breakdown, therefore, looks likely.

The overall outlook would turn bullish if and when the cryptocurrency invalidates the four-month bearish trend, as discussed on Monday.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin Garners New Users as Governments Flood World With Fiat
• What’s Next for Bitcoin After March’s Crash – CoinDesk Quarterly Review