Bitcoin MACD Signals First Bullish Indicator Since October 2023

Recent Bitcoin indicator data points to a more encouraging long-term outlook than what the current BTC price rejection from $69,000 might suggest.

Current Market Conditions for Bitcoin

On October 23, Bitcoin saw a decline to one-week lows, testing the resilience of bullish investors as it returned to support levels. Data from major market sources indicated a price drop to $60,063 on Bitstamp, representing a decline of approximately 1.5% for the day.

The BTC/USD trading pair continued to experience downward pressure, maintaining $69,000 and above as significant resistance. While many in the market anticipated this movement, trader and analyst Rekt Capital highlighted the upcoming weekly close as a crucial factor in determining the short-term trend.

He noted the importance of closing above $66,500 in the coming week, as it was previously a top resistance level that could serve as new support.

“Bitcoin needs to weekly close above the channel top for the retest to be successful; downside wicks in the meantime are permitted.”

Optimism Despite Price Consolidation

Market analyst CryptoBullet provided a positive perspective, utilizing the Moving Average Convergence Divergence (MACD) indicator to suggest that there is hope for BTC price recovery. He pointed out that the weekly MACD had crossed into bullish territory for the first time since October 2023.

The MACD serves as a trend strength indicator, evaluating recent price movements against longer-term data, and such crossovers can indicate the strength of potential new price trends.

CryptoBullet reflected on the current landscape for BTC/USD, likening it to historical patterns observed in 2021, which preceded the previous all-time high of $69,000.

He remarked on Bitcoin’s current breakout from several months of consolidation, indicating a potential upward trend ahead.

“What we’re going to see is a new all-time high in price and a lower high on MACD.”

Bitcoin and Ether Show Strong Support

As analysts continue to assess the broader economic context influencing cryptocurrency markets, attention turns to key upcoming events. Important catalysts include the United States presidential election and the Federal Reserve’s interest rate meeting scheduled for November 7.

Trading firm QCP Capital noted the nonfarm payrolls (NFP) report due for release on November 1 as a pivotal data point that could affect market expectations regarding the Fed’s future interest rate decisions.

“As the last NFP report before the next Fed meeting, it will play a critical role in shaping expectations for the Fed’s next move on interest rates.”

QCP Capital also expressed confidence that both Bitcoin and Ether remain well-supported ahead of the forthcoming jobs data release and election, suggesting potential for upward movement.

This analysis does not provide investment advice, and individuals are encouraged to conduct their own research before making any trading decisions.