Crypto Analyst: Bitcoin MACD Being Overextended is Bullish, But Consolidation is Due

Tony "The Bull" Severino

1 year ago

2 mins read

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Bitcoin has once again become the subject of water cooler talk at banks and brokers once again, following a massive price surge at the beginning of April, that saw the value of the leading crypto by market cap rise by over $1,000 over the course of an hour.

The powerful move created a higher high on the charts, and caused some technical analysis indicators to flip bullish for the first time in over a year. Another indicator, the MACD, is showing that Bitcoin buying is currently overextended. A prominent crypto analyst known for his long-term analysis using the MACD, says the indicator being overextended is bullish, but does suggest that consolidation is “due.”

Long-Term Trend Change Indicator Is Bullish, But Suggests “Consolidation” is “Due”

According to crypto analyst Dave the Wave, who often shares long-term log scale charts of Bitcoin price fluctuations dating back to before the 2014-2015 bull run, the MACD or Moving Average Convergence Divergence indicator is reading as overextended. The trader calls this a bullish sign, signaling that buyers are out in full force.

The good news is an over-extended MACD is bullish. That said, when it is this over-extended it's due a consolidation. pic.twitter.com/et1VsOQKW8

— dave the wave🌊🌓 (@davthewave) May 1, 2019

As Dave the Wave shows on his MACD chart’s histogram, each time the MACD became overextended, a period of price consolidation soon followed. The crypto analyst expects similar behavior to occur in Bitcoin markets in the coming days to weeks.

In the past, the long-term crypto chartist has used the MACD – a long-term indicator used to spot important trend changes – to help him determine if the bear market bottom for Bitcoin was in. According to his past analysis, he concludes the bottom is indeed behind us and that the recent higher high on Bitcoin price charts confirms this as such.

Using a logarithmic growth curve, Dave the Wave has demonstrated how Bitcoin’s market cap could eventually surpass that of Gold’s, with an over $7.7 trillion dollar market cap. For comparison’s sake, Bitcoin’s market cap is currently at just under $100 billion.

Most crypto investors view Bitcoin as a long-term investment that could pay handsomely, with the majority of them believing that some day the price per BTC could reach $100,000 or even “millions” of dollars each.

Bitcoin had recently surged in price as much as 25% over the past month, closing its monthly candle above resistance turned support. The crypto market is at a critical point, and whichever way it turns next could determine the trend for the months to come.

Should Bitcoin break and close above powerful resistance at $6,000, the market may enter a new bull market and the days bears controlled the price of Bitcoin will have come to an end.

Featured image from Shutterstock

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.