Bitcoin's Momentum Gauge Flips Bullish, Key Levels to Watch

A reliable momentum gauge for Bitcoin has turned bullish, indicating that the cryptocurrency's recent gains may have further room to run.

The moving average convergence divergence (MACD) histogram, a popular technical indicator, has crossed above zero with longer parameters. This suggests that the long-term momentum is turning positive and could lead to more upside for Bitcoin.

According to Omkar Godbole's analysis, the 50-day simple moving average at $65,434 is the first key level to watch. Breaking above this level would be a sign of building upside strength, while clearing the 200-day moving average near $71,147 would be strong evidence that a full bullish trend is developing.

However, traders should remain cautiously optimistic until Bitcoin pushes through these zones. Additionally, the options market on Deribit shows significant open interest at the $80,000 strike, which could lead to increased volatility as prices approach this level.