It’s Wednesday and what better way to get us over hump day than with another Bitcoin legend. This time we’re looking at the legendary green MACD indicator, and we’ve got a treat for you. The last time this indicator was green, Bitcoin shot all the way up to $14,000. Now, the MACD is still in the early phases this week, but it’s just starting to tip into the green. Can the MACD help point us to another huge bullish movement?
History Is Not on Bitcoin’s Side
The MACD is definitely swapping from deep dark red towards pinkish hues, hinting that we could be looking at the bulls rolling in to town. However, we’ve got Chinese New Year just around the corner, and this is traditionally bad for Bitcoin bulls. Typically, we see a lot of bearish movement and huge selloffs during Chinese New Year, meaning that this MACD could simply be due to the large amount of support Bitcoin has found at just over $8,200. If Chinese New Year does in fact cause the bears to take control of the price, Bitcoin could slide back down to the mid $7,000 range.
There is Still Hope
Past performance is not a good indicator of future performance, so we’re still hopeful of the future. Chinese New Year will undoubtedly play a huge part in the next movement of Bitcoin, but perhaps this time it could be a positive move upwards rather than a downwards slump. With the halving just around the corner, we could see bulls pick up some cheap Bitcoin before the event takes place. If so, the MACD could turn green and this will undoubtedly trigger a huge bullish run.
Beware though, the MACD is a lagging indicator, so by the time it’s green, Bitcoin could already be n the way down Watch out for negative Chinese New Year price action as this will be the biggest deciding factor in the coming weeks.