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

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

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

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

Related: Market Wrap: There’s a Bright Side to Bitcoin’s Drop on Worsening Unemployment

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 Whale Addresses Hit Highest Number Since August 2019

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

• The ‘Great Lockdown’ Is Boosting Demand for Bitcoin Custody Solutions
• BTSE Exchange Taps Into Crypto Demand by Increasing Request-for-Quote Limits

• 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 Whale Addresses Hit Highest Number Since August 2019

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: The ‘Great Lockdown’ Is Boosting Demand for Bitcoin Custody Solutions

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

• BTSE Exchange Taps Into Crypto Demand by Increasing Request-for-Quote Limits
• Genesis CEO Details ‘Black Thursday’ Chaos in Q1 Lending Report

• 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: The ‘Great Lockdown’ Is Boosting Demand for Bitcoin Custody Solutions

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: BTSE Exchange Taps Into Crypto Demand by Increasing Request-for-Quote Limits

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

• Genesis CEO Details ‘Black Thursday’ Chaos in Q1 Lending Report
• Shares in Grayscale’s Bitcoin Trust Up By 14% After Crypto’s Price Rallies

• 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: BTSE Exchange Taps Into Crypto Demand by Increasing Request-for-Quote Limits

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: Genesis CEO Details ‘Black Thursday’ Chaos in Q1 Lending Report

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

• Shares in Grayscale’s Bitcoin Trust Up By 14% After Crypto’s Price Rallies
• First Mover: Bitcoin Now Crushing Gold After Biggest Price Jump in Six Weeks

• 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: Genesis CEO Details ‘Black Thursday’ Chaos in Q1 Lending Report

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: Shares in Grayscale’s Bitcoin Trust Up By 14% After Crypto’s Price Rallies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: Bitcoin Now Crushing Gold After Biggest Price Jump in Six Weeks
• Bitcoin Options Trading Volumes Surge as Price Moves Above $9.4K

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

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

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

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

Related: First Mover: Bitcoin Now Crushing Gold After Biggest Price Jump in Six Weeks

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 Options Trading Volumes Surge as Price Moves Above $9.4K

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• Market Wrap: Bitcoin’s Price Tear Suggests It’s FOMO Time Again
• Bitcoin Jumps 12% as Fed Keeps Money Flowing and US Economy Shrinks

• 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 Options Trading Volumes Surge as Price Rockets Above $9.4K

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: Market Wrap: Bitcoin’s Price Tear Suggests It’s FOMO Time Again

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 Jumps 12% as Fed Keeps Money Flowing and US Economy Shrinks
• Coinbase Suffers Temporary Outage as Bitcoin Soars as High as $8,900

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

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

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

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

Related: Market Wrap: Bitcoin’s Price Tear Suggests It’s FOMO Time Again

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 Jumps 12% as Fed Keeps Money Flowing and US Economy Shrinks

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

• Coinbase Suffers Temporary Outage as Bitcoin Soars as High as $8,900
• Bitcoin Wallets Are Adopting This Tech to Simplify Lightning Payments

• 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 Jumps 12% as Fed Keeps Money Flowing and US Economy Shrinks

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: Coinbase, Kraken Suffer Temporary Outages as Bitcoin Soars as High as $8,900

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 Wallets Are Adopting This Tech to Simplify Lightning Payments
• Bitcoin Rises Above $8.1K, Clinching an April Gain for Fifth Year Running

• 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 Wallets Are Adopting This Tech to Simplify Lightning Payments

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 Rises Above $8.1K as Bull’s Eye April Gain for Fifth Year Running

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: For Bitcoin Prices, Inflation Headlines May Matter More Than the Reality
• Market Wrap: Bitcoin Edges Up to $7.7K as Mining Power Rebounds

• 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 Wallets Are Adopting This Tech to Simplify Lightning Payments

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 Rises Above $8.1K as Bulls Eye April Gain for Fifth Year Running

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: For Bitcoin Prices, Inflation Headlines May Matter More Than the Reality
• Market Wrap: Bitcoin Edges Up to $7.7K as Mining Power Rebounds

• 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 Rises Above $8.1K as Bulls Eye April Gain for Fifth Year Running

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

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

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

Related: First Mover: For Bitcoin Prices, Inflation Headlines May Matter More Than the Reality

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• Market Wrap: Bitcoin Edges Up to $7.7K as Mining Power Rebounds
• Stacking Sats? Small Bitcoin Holders on the Rise, Data Suggests

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

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

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

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

Related: First Mover: For Bitcoin Prices, Inflation Headlines May Matter More Than the Reality

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: Market Wrap: Bitcoin Edges Up to $7.7K as Mining Power Rebounds

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

• Stacking Sats? Small Bitcoin Holders on the Rise, Data Suggests
• Bitcoin’s Halving Is Irrelevant for Some Large Traders

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

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

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

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

Related: Market Wrap: Bitcoin Edges Up to $7.7K as Mining Power Rebounds

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: Stacking Sats? Small Bitcoin Holders on the Rise, Data Suggests

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• Bitcoin’s Halving Is Irrelevant for Some Large Traders
• Bitcoin Rally Pauses Near $7.8K After Longest Winning Run in 8 Months

• 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: Stacking Sats? Small Bitcoin Holders on the Rise, Data Suggests

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

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

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

Related: Bitcoin’s Halving Is Irrelevant for Some Large Traders

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 Rally Pauses Near $7.8K After Longest Winning Run in 8 Months
• Why a Startup You’ve Never Heard of Is Now Sponsoring a Bitcoin Core Developer

• 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’s Halving Is Irrelevant for Some Large Traders

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 Rally Pauses Near $7.8K After Longest Winning Run in 8 Months

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 a Startup You’ve Never Heard of Is Now Sponsoring a Bitcoin Core Developer
• Market Wrap: Ether Up 50% in 2020, Hits $200 on Sunday

• 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 Rally Pauses Near $7.8K After Longest Winning Run in 8 Months

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 a Startup You’ve Never Heard of Is Now Sponsoring a Bitcoin Core Developer

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• Market Wrap: Ether Up 50% in 2020, Hits $200 on Sunday
• Bitcoin Hits Highest Level Since Black Thursday Amid Halving Buzz

• 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: Why a Startup You’ve Never Heard of Is Now Sponsoring a Bitcoin Core Developer

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: Market Wrap: Ether Up 50% in 2020, Hits $200 on Sunday

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 Hits Highest Level Since Black Thursday Amid Halving Buzz
• First Mover: Ether Trounces Bitcoin as Network Sees Surge in Stablecoins

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

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

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

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

Related: Market Wrap: Ether Up 50% in 2020, Hits $200 on Sunday

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 Hits Highest Level Since Black Thursday Amid Halving Buzz

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• First Mover: Ether Trounces Bitcoin as Network Sees Surge in Stablecoins
• Market Wrap: Bitcoin Steady at $7.5K as Short Sellers Back Off

• 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 Highest Level Since Black Thursday Amid Halving Buzz

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

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

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

Related: First Mover: Ether Trounces Bitcoin as Network Sees Surge in Stablecoins

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bitcoin image via Shutterstock; charts by Trading View

• Market Wrap: Bitcoin Steady at $7.5K as Short Sellers Back Off
• Why Global Deflation May Not Be Bad News for Bitcoin