Bitcoin is edging closer to a new milestone, with its price nearing the $70,000 mark. During Monday’s Asian trading hours, the leading cryptocurrency rose to $69,500, signaling that a break above $70,000 might just be around the corner. There is a promising shift on the charts, particularly in the moving average convergence divergence (MACD) histogram, an important metric. This technical tool helps track trend strength and shifts, and it’s showing some bullish signs. At the time of writing, Bitcoin is trading at $69,100.
For the first time since April, the MACD histogram has flipped positive on the weekly chart. This indicates a renewed upward momentum, suggesting Bitcoin could finally move past its months-long struggle to break free from the $50,000 to $70,000 range. The MACD itself is calculated by taking the difference between Bitcoin’s average price over the last 26 weeks and its average over the past 12 weeks. From there, a nine-week average of the MACD is used to form the signal line, and the difference between these two is what creates the histogram.
This indicator is quite popular among traders because it helps them see shifts in momentum. Earlier in September, the MACD’s behavior hinted that the downtrend might be running out of steam. Now, with it turning positive, there’s a sense that Bitcoin might be ready for another upward push.
But it’s not just technical charts hinting at a brighter outlook. Broader trends also point in the same direction. For instance, the Federal Reserve appears to be leaning toward rate cuts, which could provide support for Bitcoin prices. Additionally, Donald Trump leading the polls for the upcoming U.S. election is another boost of confidence. We also can’t ignore the weakened Japanese yen, which tends to push investors toward riskier assets like Bitcoin. All these factors combined are driving a consensus that Bitcoin could hit $140,000 by the end of December.
Analysts are also weighing in on this possibility. According to Crypto Trader Rekt Capital, Bitcoin has managed to close the week by challenging the reaccumulation range high resistance for the first time since June 2024. This could provide the support needed for Bitcoin to break past $70,000 and maintain its upward trajectory. (The “reaccumulation range high resistance” is a key price level that Bitcoin needs to break through to signal the end of a consolidation phase and start a new upward trend.)
Bitcoin is on the cusp of a bullish Weekly Close that would likely position price for a challenge of the ReAccumulation Range High resistance for the first time since June 2024$BTC #Crypto #Bitcoin https://t.co/O9NxqeWmko pic.twitter.com/5YvbBmVkH8
— Rekt Capital (@rektcapital) October 20, 2024
With a positive technical setup and favorable broader trends, we might see Bitcoin reaching new heights soon. For now, all eyes are on the $70,000 mark to see if this bullish momentum can carry through.
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