MACD Flips Bullish for Bitcoin: Can it Hit $70,000?

Bitcoin's recent rally above $64,000 may have further room to run according to a reliable momentum gauge called the moving average convergence divergence (MACD) histogram.

The longer-term version of the MACD has turned positive for bitcoin, signaling a bullish shift in momentum. This indicator has proved reliable throughout the price crash from the record high of $126,000 and has predicted previous recovery rallies.

Traders typically watch key levels to confirm the direction of the trend. The first level to watch is the 50-day simple moving average at around $65,434. Breaking above this level would be a sign that upside strength is building. The second key level is $67,292, which was the mid-June high. Clearing this resistance would show buyers have overcome previous selling pressure.

The most significant level to watch is the 200-day moving average near $71,147. This long-term trend indicator acted as major resistance in early May and clearing it convincingly would be strong evidence of a full bullish trend developing.