Bitcoin Momentum Change Sets Stage for Possible Rush, Here’s Why
Bitcoin bulls may be preparing to charge significantly higher, according to a high-time-frame momentum gauge.
The technical indicator has just entered bullish territory, and if confirmed, it will be the third time in the history of the top cryptocurrency that such a signal was fired from bear market bottoms. It could suggest a major momentum change and set off a stampede across the crypto market.
Forget intraday movements, long-term trends are due to change
Bitcoin price bounces back after a recent rejection above $30,000 and retest of $27,000. Currently trading just below $28,300 just 48 hours later, it’s starting to look like bulls are in charge.
After a long and painful crypto winter that took down FTX and much of the industry with it, the tide may be turning. This is evident in the 4W LMACD, which crosses bullish for the first time since October 2021.
Even then, LMACD ticked bullish for only one candle close, and ultimately failed to confirm. The result was a nasty downward trend in Bitcoin. This is also why BTCUSD needs to stay bullish in several candles at this point to confirm the bullish crossover.
If confirmed, it would be only the third instance of bear market bottoms around the zero line. There are other crossovers while they are well above the zero line, but they were often false leading to disadvantages.
Is Bitcoin ready for a huge momentum change? | BTCUSD on TradingView.com
Why a Bitcoin Bullish Crossover Could Mean Crypto Winter is Over
If Bitcoin bulls can hold current levels for the next four weeks, the 4W will close with a bullish crossover of the LMACD. LMACD is the logarithmic version of the Moving Average Convergence Divergence indicator.
It shows momentum changes relative to long-term price movements more clearly, versus its linear-based counterpart. Simply put, it is becoming increasingly clear that momentum is changing.
LMACD like MACD is a lagging indicator. Although the crossing of the LMACD line through the signal line from below is a buy signal, the real trend change would have already happened several candles ago, when the bearish momentum started to weaken.
Earlier, a confirmed bullish crossover of the utility from around the zero line resulted in a massive rally. The first resulted in more than 5000% return. The other gave more than 1800% return. What results will this latest crossover bring?
4W #Bitcoin The LMACD has just crossed bullish for the first time since October 2021
Close to cyclical perfection and at an intermediate level. The top of the range is next. pic.twitter.com/uy4nWOG0aV
— Tony “The Bull” (@tonythebullBTC) 26 April 2023
