U.Today - As Bitcoin (BTC), the largest cryptocurrency, struggles with the pressure of bears, its positive momentum becomes sufficient to trigger a very rare "golden cross" on an important time frame. A seasoned analyst explains why this is a paramount moment for the entire bullish cycle of BTC.
Bitcoin (BTC) monthly MACD turned bullish after four years
Today, on June 30, 2023, Bitcoin (BTC) registered a third "golden cross" in its history for its moving average convergence/divergence indicator on a 30-day time frame. This fact was noticed by pseudonymous cryptocurrency analyst who goes by @CryptoJelleNL on Twitter.The MACD is considered to be a reliable trendline momentum indicator. It is designed to demonstrated the relationship between two exponential moving averages (EMAs) of an asset's price. Namely, the trendline is calculated by subtracting the 26-period EMA from the 12-period EMA.
A bullish "cross" on MACD on a monthly chart is very rare for Bitcoin (BTC). Previously, it was only registered twice: in late 2015 and in June 2019. Both times, this signal was an indicator of an upcoming bullish run. In the 2015-2016 run, the Bitcoin (BTC) price jumped by 4,000% after this signal occured. In the 2019-2021 run, the price of the orange coin increased by 400%.
However, in the short-term perspective this indicator is a crucial "sell" signal, as the analyst stresses:
Some commentators, below this statement, opined that Bitcoin's (BTC) monthly candle is not closed yet, so the indicator might not be accurate.
Bitcoin (BTC) plummets by 4.1% in no time: Reason
At the same time, Bitcoin (BTC) disappointed many bulls with its recent dropdown. A few hours ago, after the SEC characterized the Bitcoin ETF filings by BlackRock (NYSE:BLK) and Fidelity as "inadequate," Bitcoin (BTC) plummeted.In almost no time, it dropped from $31,100 to $29,800 on major spot trading platforms. As such, the first cryptocurrency lost over 4.12% in a few minutes.
In total, over $3 million in BTC positions were liquidated in the last hour, and 90% of them were longs. By press time, the price erased losses partially and stabilized over $30,050.