Bitcoin Price Surges To Near $70K: Bullish Momentum Signals New Highs in 2024

Key Takeaways:

• MACD Indicator Turns Bullish: The Moving Average Convergence Divergence (MACD) on Bitcoin price’s weekly chart has flipped positive for the first time since April, suggesting renewed momentum and potential for a breakout above $70,000.
• Bitcoin Price Nears $70K: Bitcoin price has surged nearly 30% from its September lows under $53,000, reaching $69,500, with analysts predicting further gains as momentum builds.
• Macro Factors Support Bullish Outlook: The Federal Reserve’s potential rate cuts, a strong US election outlook for pro-crypto candidates, and a weak Japanese yen are contributing to Bitcoin price’s bullish trend.
• Historical Precedent Suggests New Highs: Previous MACD flips in 2022 and 2023 coincided with significant rallies, indicating that Bitcoin could reach new record highs, with projections aiming for $100,000 by year-end.
• Market Sentiment and Technicals Align: Growing liquidity, rising Bitcoin transactions, and a positive technical outlook provide a favorable environment for continued upward movement in Bitcoin prices.

A widely-tracked momentum indicator has flipped positive for the first time since April for Bitcoin price. The Moving Average Convergence Divergence (MACD) histogram on Bitcoin price’s weekly chart turned bullish, signaling a renewed upward shift in momentum. This indicator, which measures trend strength and changes, suggests a bullish resolution to Bitcoin price’s prolonged trading range between $50,000 and $70,000. Historically, similar bullish flips occurred at the onset of rallies in late 2023 and late 2022, marking the end of significant downtrends.

BTC’s weekly candlesticks chart with MACD | Source: TradingView / CoinDesk

The MACD technical indicator is calculated by subtracting Bitcoin’s average price level over the past 26 weeks from the average over the past 12 weeks, with a nine-week average used for the signal line. The difference between the MACD and the signal line is plotted as a histogram. The positive shift in the MACD histogram follows Bitcoin’s nearly 30% rise from lows under $53,000 in early September to $69,500 during Monday’s Asian trading hours.

Read: Bitcoin price prediction

Factors Contributing to Bitcoin’s Bullish Outlook

Several factors contribute to the optimistic outlook for Bitcoin price. The Federal Reserve’s renewed bias for rate cuts, the growing probability of pro-crypto Republican candidate Donald Trump winning the upcoming US presidential election, and weakness in the anti-risk Japanese yen are all expected to drive Bitcoin price higher. Analysts suggest these factors could push Bitcoin to at least $100,000 by the end of December.

Historical Context and Future Projections For Bitcoin Price

The latest bullish signal from the MACD follows a similar flash from the “line break chart” last week. This suggests that bulls might finally establish a foothold above the $70,000 mark, having failed to do so several times since the first quarter. In October last year, a similar MACD bull cross propelled Bitcoin past the $30,000 resistance, eventually reaching a record high of over $73,000 in March 2024. The bull cross seen in late 2022 marked the bear market bottom, indicating a potential for new highs.

Read: Crypto market bull run

Bitcoin’s Recent Performance and Market Sentiment

Bitcoin has risen significantly, nearly 30% from its early September lows under $53,000 to $69,500. The MACD’s positive shift on the weekly chart aligns with broader market sentiment and technical indicators, suggesting that Bitcoin may break through the $70,000 resistance level. This renewed momentum is bolstered by increasing stablecoin liquidity and rising Bitcoin transactions, forming a bullish outlook for the crypto market.

Conclusion

Bitcoin’s MACD has been turning bullish for the first time since April, which signals a potential upward shift in momentum. With favorable macroeconomic factors and historical precedents, Bitcoin price could reach new highs in the coming months. Investors and analysts will closely monitor these developments as Bitcoin approaches the $70,000 mark and beyond.

Source: CoinDesk