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According to a report from BlockBeats citing Coindesk analyst 'Omkar Godbole', he noted that the MACD indicator on Bitcoin's weekly chart has crossed above the zero line, which is considered a strong signal for the return of bullish momentum in the market.
What does this mean?
Crossing the zero line in the MACD indicator (which stands for Moving Average Convergence Divergence) means that the moving averages have started to tilt in favor of buyers, providing a positive signal that could push the price upward.
This technical event coincides with Bitcoin's price bouncing from the simple moving average of 50 weeks (50-Week SMA), which is similar to what happened in mid-2024 and early 2023 — periods that saw notable price increases for Bitcoin afterward.
Historical analysis:
The analyst noted that over the past five years, the MACD indicator entered the positive zone five times, four of which were accurate and led to significant price increases, while there was only one false signal in March 2022 that led to false estimates by optimistic traders.
Comprehensive analysis:
This technical signal indicates the likelihood of Bitcoin continuing to rise in the coming period, especially if supported by positive market news or institutional inflows. However, it's important to note that technical indicators are not a guarantee, but a tool to assist in decision-making, so it is always recommended to use them alongside other analyses, such as fundamental analysis and understanding market sentiment. Excellent! I will now give you a simplified explanation of the MACD indicator and how it can be used practically, then illustrate how it looks on the chart.
What is the MACD indicator?
MACD stands for Moving Average Convergence Divergence.
This indicator is used to determine the momentum direction and whether the market is in an uptrend or downtrend.
Components of the MACD indicator:
1. The fast line (MACD Line):
It is the difference between the 12-day and 26-day exponential moving averages.
If the line is above zero: Bullish signal.
If below zero: Bearish signal.
2. The slow line (Signal Line):
Exponential moving average for the fast line (typically over 9 days).
When the fast line crosses above the slow line: Buy signal.
When the fast line crosses below the slow line: Sell signal.
3. The histogram:
It is the difference between the fast line and the slow line, and it appears as bars.
When it crosses from below zero to above it: Positive momentum.
When it crosses from above zero to below it: Negative momentum.
How do we read its signals?
The histogram crossing above the zero line = Beginning of new bullish momentum (as recently occurred).
Crossovers of the lines = Short-term buy or sell signals.
Real-world example (Bitcoin):
At the beginning of 2023, when the price bounced from the 50-week moving average, a positive MACD crossover occurred, followed by a strong price increase.
Now, in May 2025, this same pattern is repeating:
The price bounces from the same level (50W SMA).
MACD crosses above zero.
This could indicate the beginning of a new upward wave if confirmed by good trading volumes and positive news.
Would you like me to add the chart for you or explain how to use the MACD indicator in a #StrategyTrade #TradeWarEases #BinanceAirdropNXPC #BinanceAirdropNXPC #BinanceAlphaAlert manner?