By CCN Markets: According to technical analyst Eric Thies, a key technical indicator may signal strong long-term momentum for bitcoin for the first time since 2015.
Key technical indicator for bitcoin about to signal an upside movement (source: King Thies)
The last time the 1-month moving average convergence divergence (MACD) achieved a signal cross, the bitcoin price increased from $400 to ultimately $20,000 within a three-year span.
Positive macro landscape for bitcoin
As the bitcoin price spiked from $3,900 to $8,000 in less than three months by outperforming most assets and every major stock index, technical analysts generally anticipated a large pullback to hit the market.
One cryptocurrency trader stated that major assets have been unable to break out of key resistance levels as of late, which may potentially indicate the formation of a short term top and could increase the likelihood of a hard reset or a big pullback.
The trader said:
We’ve seen no major break out above a significant horizontal resistance level with accompanying volume. LTC / BTC appears to have topped out, and I believe #litecoin was a major catalyst in the past week’s ‘rally.’ We may still see a hard reset yet.