Analytics / Forex and Crypto News
The popular trend indicator MACD, which is used to determine the strength and direction of the trend, crossed the zero mark on the weekly chart of Bitcoin and is currently at negative values for the first time since February this year when BTC was trading at $3,700. Coindesk analyst Omkar Godball drew attention to this.
He says that such an intersection is considered a sign of the beginning of a new downtrend, and movement above zero is a confirmation of the change in the bearish trend to a bullish one. Nevertheless, Godball notes, many traders consider MACD a lagging indicator. In the end, this is the spread between two moving averages (MA), which are based on past data.
Moreover, the MACD bearish crossings marked the end of the corrections in the bull market in 2015-2017, as another popular analyst Murad Makhmudov wrote on Twitter today. He recommended caution, especially considering that Bitcoin is in the bull market.
Godball says the forecast will become bullish when the BTC closes above $12,000 on the weekly chart.
Bitcoin fell by 10.49% in the second week of this month, reinforcing arguments for a deeper pullback, which appeared due to repeated inability to close above $12,000 in previous weeks. The rally from the $4050 lows observed in April essentially stopped at around $12,000, and a weekly close above this level is needed to confirm the bullish momentum.
The inability of Bitcoin to make a stronger rebound from the 100-MA support line is also a concern for bulls. Besides, the breakdown of the rising wedge, the bearish reversal pattern observed on the 4-hour chart (on the right) last week, is still valid.
Godball concludes that the bearish scenario will weaken if prices rise above $10,956 (August 20 high), which will destroy the pattern of lower highs on the daily chart.
During November, ICO-projects sold 416K ETH. This is the largest figure since the summer, reports Trustnodes.
According to Santiment, in August, ICO startups sold only 100,000 ETH. In September, sales of digital currency increased significantly, reaching 300 thousand ETH. In Nov