Bitcoin Momentum Change Sets Stage For Possible Stampede, Here’s Why
Bitcoin bulls may be preparing to charge significantly higher, according to a high-term momentum measurement tool.
The technical indicator has just entered bullish territory, and if confirmed, it would be the third time in the major cryptocurrency’s history that such a signal has been triggered from bear market lows. This could hint at a major shift in momentum and trigger a stampede in the cryptocurrency market.
Forget intraday movements, long-term trends must change
Bitcoin price is bouncing back after a recent rejection above $30,000 and a retest of $27,000. Currently trading at just under $28,300 just 48 hours later, it’s starting to look like the bulls are in charge.
After a long and painful crypto winter that brought down FTX and much of the industry with it, the tide may be turning. This is evident in the 4W LMACD, which is trending for the first time since October 2021.
Even so, the LMACD marked high for just one candle close and ultimately failed to confirm. The result was a nasty downtrend in Bitcoin. This is also why BTCUSD needs to keep rising for several candles at this point to confirm the bullish crossover.
If confirmed, it would be only the third occurrence of bear market lows around the zero line. There are other crosses well above the zero line, but these were usually fakes leading to a drop.
Is Bitcoin ready for a huge momentum change? | BTCUSD on TradingView.com
Why a Bitcoin Bullish Crossover Could Mean Crypto Winter is Over
If Bitcoin bulls can hold current levels for the next four weeks, the 4W will close with a bullish LMACD crossover. The LMACD is the logarithmic version of the Moving Average Convergence Divergence indicator.
It displays momentum changes relative to longer-term price movements more clearly compared to its linear counterpart. Simply put, it’s becoming increasingly clear that the momentum is changing.
The LMACD like the MACD is a lagging indicator. Although the crossing of the LMACD line through the bear signal line is a buy signal, the actual trend change would have already happened several candles ago when the bearish momentum started to fade.
In the past, a confirmed bullish crossover of the tool around the zero line has resulted in a massive rally. The first one resulted in over 5,000% ROI. The second got more than 1,800% ROI. What will this latest crossover bring as a result?
the 4W #Bitcoin LMACD just crossed higher for the first time since October 2021
Close to cyclic perfection and in the mid-range. Top of the range is next. pic.twitter.com/uy4nWOG0aV
— Tony “The Bull” (@tonythebullBTC) April 26, 2023