On the 17th of January 2023, Bitcoin Archive, an insight and news channel posted that Bitcoin’s MACD has crossed over into bullish territories.
#Bitcoin 2-week MACD just crossed-over
This signalled the end of the bear-market last cycle, and then start of a massive bull-run on the second cross-over. LFG!🙌 pic.twitter.com/CvyuBwMtsA
— Bitcoin Archive (@BTC_Archive) January 17, 2023
For the past two weeks, Bitcoin’s price has been on a rally streak. The MACD crossed over the $21k mark into what enthusiasts are calling the bullish range.
If their speculations are correct, this event would signal the end of the bear market and the start of a massive bull rally.
Last year brought a crypto winter that was rough for almost every project in the crypto space. Even the largest cryptocurrency lost around 65% of its value. Other projects, centralized or not, were caught off guard which led to one of the greatest crashes in the crypto space. Ushering in a period of uncertainty.
Though analysts couldn’t predict the future, they tried to predict the end of the bear market, by analyzing previous bear markets and their movements.
The longest bear market previously was in 2018, and it’s said to have lasted for around 2 years, which is a significant period. Using that, analysts speculated that the bear market would recover at the end of 2023.
Yet, according to the Bitcoin Archive, the bear market is ending earlier than anticipated. They arrived at this conclusion by calculating the moving average convergence/divergence or MACD.
The MACD is a momentum indicator that follows the trend to show the relationship between two exponential moving averages of a security’s price. The result of such calculations is the MACD line. A signal line is plotted at the top of the MACD line which indicates if the trader should buy or sell assets.
In a chart shared by the Bitcoin Archive on TradeView, it seems Bitcoin has crossed over the MACD line, and it’s all bullish from here.
Some users on Twitter speculated that the activities of whales aren’t the only major factor affecting the rally, but the Routine reward halving design that occurs every four years.
Looking at the trend, the Bitcoin halving event which is happening in 2024, would cut the price of BTC rewards to its miners, and increase the price of the asset exponentially.
This event is also viewed as a positive way to control BTC’s supply, reducing the supply and increasing demand, as a result, the market value of the Bitcoin project has surpassed that of J.P. Morgan.
— Documenting ₿itcoin 📄 (@DocumentingBTC) January 17, 2023
To some users, the above signifies the value of decentralization over centralization.