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Following a continued downtrend and recent lows around $7,700 being defended by bulls, Bitcoin price is currently trading at $8,300 after a surge to $8,800 overnight last night was rejected with force by bears.
However, according to a bullish crossover on the already oversold daily MACD, Bitcoin price could be targeting the previous high of $12,000 as early as November if bulls can build on the momentum that is mounting.
Daily MACD Signals Bullish Momentum is Building
Bitcoin price has been struggling to find support and regain the bullish momentum it had throughout 2019. But an important momentum indicator, may be suggesting that bulls are building momentum at the current price range, and could push the price of the leading crypto asset by market cap higher.
Related Reading | Bitcoin Price: Reclaiming Important Moving Average Could Lead to Retest of Highs
According to a prominent crypto analyst, the daily MACD – the moving average convergence divergence indicator – has recently made a bull cross, and it could result in Bitcoin prices retesting former highs.
Daily MACD bullish crosses always were followed by the price rise.
We had another one just recently.
And at that time MACD is also very low (oversold condition).
$12k as a target until November? 🤔$BTC $BTCUSD #bitcoin pic.twitter.com/UlzqD0P6A3— CryptoHamster (@CryptoHamsterIO) October 11, 2019
The analyst has shared a price chart that points out a significant price rise each time the daily MACD indicator crossed bullish. And with this current bullish cross occurring with Bitcoin far below the zero line on the MACD, it indicates that this is the most oversold the crypto asset has been since it started its parabolic rally in April 2019.
Bitcoin Price Could Reach $12,000 if Momentum is Sustained
If the bull cross on the MACD can sustain, and bulls are able to continue the momentum they’re building, the analyst says that a retest of $12,000 could be in the cards. Bitcoin price hasn’t traded at $12,000 since the start of August, and after it failed to break above that level, it’s been in a downtrend ever since.
The MACD is often considered a lagging indicator, which could suggest that the bullish price action has already played out, and the MACD could begin rolling back downward now that Bitcoin price is once again falling.
A powerful bull flag from lows around $7,800 started a $1,000 rally that may have topped out last night at $8,800. However, if the analyst’s MACD-based prediction plays out, the rejection last night could have been a retest of support that has now been confirmed, and the rally could continue from here, taking Bitcoin price all the way to the $12,000 price level the analyst is targeting.
Related Reading | Bitcoin Correction Bottom Target Is $6,000, Coincides With Production Cost
If Bitcoin price cannot make it past current levels, the analyst’s idea will be invalidated and levels below recent local lows would become realistic targets in the days, weeks, and months ahead before the first-ever cryptocurrencty finally turns around and continues on its bull run.
Featured image from Shutterstock
