According to recent research by well-known cryptocurrency trader Dave the Wave, the Bitcoin monthly MACD (moving average convergence divergence) has crossed the zero line, suggesting a possible entry into a bullish phase as well.
Experts, enthusiasts, and investors have taken notice of this development as the world’s most popular cryptocurrency, Bitcoin, is about to see a possible price increase.
A reliable indicator of price moves?
The connection between two moving averages of an asset’s price, usually the 12-day and 26-day exponential moving averages, is displayed by the trend-following momentum indicator known as the MACD.
In general, it is considered a positive indication that the asset’s price may soon begin to rise when the MACD crosses above the zero line.
The latest graphic shows that the MACD for Bitcoin has now moved above this critical level.
Many technical experts consider such a move to be good, as it has historically preceded market gains.
Recent bullish predictions
Global asset management company Bernstein has stated that it is optimistic about the future price performance of Bitcoin, predicting a jump to $150,000 by the middle of 2025.
With Bitcoin trading at $34,400 right now, this would be an astounding 336% increase from its present position. The forecast is based on the past correlation between the price and price-to-marginal cost of Bitcoin. Previous data indicates that the price of Bitcoin seldom drops below its marginal cost, suggesting that this measure might act as a stable “floor” for the value of the cryptocurrency.
In other bullish predictions, Matrixport, a crypto services provider, suggested that if BlackRock’s ETF is approved, Bitcoin would rise between $42,000 to $56,000. This estimate is dependent on prospective capital inflows that approach $24 billion.
Additionally, the financial behemoth Standard Chartered raised its projection for Bitcoin by $120,000 by the end of 2024 from $100,000, indicating growing trust in the resiliency and potential of the cryptocurrency sector.
