The moving average convergence divergence (MACD) indicator for leading cryptocurrency Bitcoin signals the end of bearish pressures as bitcoin’s corrective rally picks up pace.
The MACD indicator which shows momentum has diverged from its previous downward trend a move considered a sign of seller exhaustion and often followed by trend reversal.
if the inverse head-and-shoulders neckline, currently at $3,735, is breached, Bitcoin could rise above $4,000 feeding speculation that the cryptocurrency could bottom out in 2019 and reverse.
“On the weekly chart, the MACD has produced a higher low in favor of the bulls. It is worth noting that a similar bullish divergence was charted over the five months leading up to January 2015, when BTC bottomed out near $150,” news agency Coin Desk notes.
the probability of BTC witnessing a bullish reversal in the next few months is high with the likelihood of the 21-month exponential moving average (EMA) – hitting a level which acted as strong support last year confirming a long-term bearish-to-bullish trend change.