Proven Bitcoin Momentum Indicator Flashes Green, Supporting Analyst $140K-$200K Price Predictions

This is simply a regular method investigation by CoinDesk expert and Chartered Market Technician Omkar Godbole.

A momentum indicator, with a beardown way grounds of forecasting large bitcoin (BTC) terms moves, has flipped bullish, reinforcing analysts’ caller predictions of a rally to $150K–$200K.

The method investigation indicator is called the Moving Average Convergence Divergence (MACD) histogram, which represents the quality betwixt the MACD enactment and its awesome line. The MACD enactment is calculated by subtracting the 26-period (days oregon weeks) exponential moving mean (EMA) from the 12-period EMA of an asset's price. The awesome enactment is simply a 9-period EMA of the MACD enactment itself.

A affirmative displacement successful the MACD histogram is interpreted arsenic a modulation from bearish to bullish momentum and is wide considered a bargain awesome by traders.

BTC's play illustration MACD has crossed supra zero, indicating a renewed bullish momentum.

The latest bullish awesome follows bitcoin's bounce from the 50-week elemental moving mean (SMA), replicating patterns observed successful mid-2024 and aboriginal 2023. On some occasions, BTC subsequently experienced beardown rallies.

Note however the MACD flipped affirmative successful the 2nd fractional of October, informing of a large determination higher. BTC broke supra $70K successful aboriginal November and yet reached grounds highs successful December.

Over the past 5 years, the MACD has crossed into affirmative territory 5 times, with lone 1 mendacious awesome successful March 2022, which trapped bulls (marked by circle) connected the incorrect broadside of the market.

The latest awesome is accordant with the bullish macro representation and analysts' calls for a rally to higher levels. Early this week, Standard Chartered said that organization adoption and concern lows could assistance bitcoin arsenic precocious arsenic $200K.

In a study shared with CoinDesk connected Tuesday, analysts astatine Bitfinex said BTC is evolving into a planetary macro reserve plus and could emergence to $150K-$180K successful 2025-26.