The long term trend line has been touched on 5 separate occasions including the 2014 bear market bottom and Black Thursday in March 2020. Losing this trend line could be disastrous for the cryptocurrency market.
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Although a bullish crossover could confirm the bottom, the MACD gets a reputation for being a lagging indicator and therefore the bottom could be in long before the bull crossover confirms
However, if bulls can complete the bull cross, in previous cycles the change in momentum was enough to kickstart a bullish impulse. The MACD is currently one of the most important indicators to watch on weekly timeframes..
Although the MACD had opened green the week prior, the late-week selloff uncrossed the bullish crossover and has forced momentum sideways. The weekly MACD is at historical bear market readings. Diverging down further would be unprecedented and likely take Bitcoin down below $17K.
Yesterday gave us a fresh weekly close in BTCUSD. In particular, we will be using the Logarithmic MACD in our analysis. The log version of the MACD provides better comparative analysis across past cycles.