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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: Bitcoin Sinks Below $5K Despite Fed Reserve’s Slashing of Interest Rates

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 Ekes Out Gains but Remains in Red Amid Broader Market Rebound

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

• Despite Bitcoin Price Dips, Crypto Is a Safe Haven in the Middle East
• Crypto Prepped Before Coronavirus Went Global

• 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 Ekes Out Gains but Remains in Red Amid Broader Market Rebound

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: Despite Bitcoin Price Dips, Crypto Is a Safe Haven in the Middle East

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

• Crypto Prepped Before Coronavirus Went Global
• Whale Watching: Exchange Data Contained Early Warning of Thursday’s Bitcoin Dump

• 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: Whale Watching: Exchange Data Contained Early Warning of Thursday’s Bitcoin Dump

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 Briefly Dips to 12-Month Low in Overnight Trading

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

• Investors Can Hedge Long-Term Risk With New 2-Year Bitcoin Derivatives
• Bitcoin Falls Below $5K as Market Pain Deepens

• 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 Briefly Dips to 12-Month Low in Overnight Trading

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: Investors Can Hedge Long-Term Risk With New 2-Year Bitcoin Derivatives

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 Falls Below $5K as Market Pain Deepens
• Makeup Mogul Michelle Phan’s Coronavirus Strategy Is Educate and HODL Bitcoin

• 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 Recovers 40% From 12-Month Low Below $3.9K

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: Investors Can Hedge Long-Term Risk With New 2-Year Bitcoin Derivatives

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 Falls Below $5K as Market Pain Deepens
• Makeup Mogul Michelle Phan’s Coronavirus Strategy Is Educate and HODL Bitcoin

• 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: Investors Can Hedge Long-Term Risk With New 2-Year Bitcoin Derivatives

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 Falls Below $5K as Market Pain Deepens

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

• Makeup Mogul Michelle Phan’s Coronavirus Strategy Is Educate and HODL Bitcoin
• In Echo of 2008, Fed Pledges $1.5 Trillion Injection to Aid Reeling 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: Bitcoin Falls Below $5K as Market Pain Deepens

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: Makeup Mogul Michelle Phan’s Coronavirus Strategy Is Educate and HODL Bitcoin

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

• In Echo of 2008, Fed Pledges $1.5 Trillion Injection to Aid Reeling Markets
• Cash Is the New Safe Haven as Crypto, Gold Continue to Tank

• 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: Makeup Mogul Michelle Phan’s Coronavirus Strategy Is Educate and HODL Bitcoin

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: In Echo of 2008, Fed Pledges $1.5 Trillion Injection to Aid Reeling Markets

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

• Cash Is the New Safe Haven as Crypto, Gold Continue to Tank
• US Charges Dutch National With Running Crypto-Funded Child Porn Site

• 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: In Echo of 2008, Fed Pledges $1.5 Trillion Injection to Aid Reeling 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: Cash Is the New Safe Haven as Crypto, Gold Continue to Tank

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

• US Charges Dutch National With Running Crypto-Funded Child Porn Site
• Down 26%: Bitcoin Sees Worst Sell-Off in 7 Years as Coronavirus Spurs Flight to Safety

• 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: US Charges Dutch National With Running Crypto-Funded Child Porn Site

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: Down 26%: Bitcoin Sees Worst Sell-Off in 7 Years as Coronavirus Spurs Flight to Safety

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’s Crash Triggers Over $700M in Liquidations on BitMEX
• Ether Suffers Record-Setting 33% Drop Amid Global Market Turmoil

• 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 Hits 10-Month Low Below $6K as Stocks Plunge in Massive Sell-Off

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: As NY Fed Promises More Cash, What Will Christine Lagarde Do?

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

• Why Energy Experts Are Watching Crypto as Oil Wars Emerge
• US Homeland Security Charges LocalBitcoins Seller With Money Laundering

• 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 Hits 10-Month Low Below $6K Alongside Stock Markets Plunge

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: As NY Fed Promises More Cash, What Will Christine Lagarde Do?

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

• Why Energy Experts Are Watching Crypto as Oil Wars Emerge
• US Homeland Security Charges LocalBitcoins Seller With Money Laundering

• 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: As NY Fed Promises More Cash, What Will Christine Lagarde Do?

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: Why Energy Experts Are Watching Crypto as Oil Wars Emerge

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

• US Homeland Security Charges LocalBitcoins Seller With Money Laundering
• Bitcoin News Roundup for March 11, 2020

• 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 News Roundup for March 11, 2020

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 Is Now Up Just 9% This Year

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

• That Noise You’re Hearing? Central Banks Struggling to Evolve
• Here’s Another, Surprising Reason Why Crypto Prices Fell – Derivatives

• 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 Is Now Up Just 9% This Year

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: That Noise You’re Hearing? Central Banks Struggling to Evolve

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

• Here’s Another, Surprising Reason Why Crypto Prices Fell – Derivatives
• Bitcoiners in Europe Reflect on Economic Shocks as Coronavirus Spreads

• 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 Is Now Up Just 8% This Year

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: That Noise You’re Hearing? Central Banks Struggling to Evolve

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

• Here’s Another, Surprising Reason Why Crypto Prices Fell – Derivatives
• Bitcoiners in Europe Reflect on Economic Shocks as Coronavirus Spreads

• 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: That Noise You’re Hearing? Central Banks Struggling to Evolve

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: Here’s Another, Surprising Reason Why Crypto Prices Fell – Derivatives

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

• Bitcoiners in Europe Reflect on Economic Shocks as Coronavirus Spreads
• When the Going Gets Weird, CoinDesk Readers Look for These Safe Havens

• 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: Here’s Another, Surprising Reason Why Crypto Prices Fell – Derivatives

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: Bitcoiners in Europe Reflect on Economic Shocks as Coronavirus Spreads

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

• When the Going Gets Weird, CoinDesk Readers Look for These Safe Havens
• Bitcoin News Roundup for March 10, 2020

• 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: Bitcoiners in Europe Reflect on Economic Shocks as Coronavirus Spreads

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: When the Going Gets Weird, CoinDesk Readers Look for These Safe Havens

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 News Roundup for March 10, 2020
• Bitcoin Back Over $8K as Traditional Markets Rebound

• 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: When the Going Gets Weird, CoinDesk Readers Look for These Safe Havens

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 News Roundup for March 10, 2020

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 Back Over $8K as Traditional Markets Rebound
• Kraken Exchange Pledges India Expansion as Nation Reopens for Crypto Business