The post MACD Histogram Turns Positive on Weekly Chart, Signaling Upward Momentum appeared on BitcoinEthereumNews.com.

In a promising development for Bitcoin enthusiasts and investors, the Moving Average Convergence Divergence (MACD) histogram for Bitcoin (BTC) has turned positive on the weekly chart for the first time since April. According to CoinDesk, citing data from TradingView, this technical indicator suggests a potential upward momentum in Bitcoin’s price. This shift mirrors a similar pattern observed in October of the previous year, which preceded Bitcoin’s breakout past the $30,000 resistance level and its subsequent peak of over $73,000 by March of this year.   Understanding the MACD Indicator The Moving Average Convergence Divergence (MACD) is a popular technical analysis tool used to identify changes in the strength, direction, momentum, and duration of a trend in a stock’s price. Developed by Gerald Appel in the late 1970s, the MACD is used by traders to spot potential buy and sell signals based on the relationship between two moving averages of a security’s price. Components of the MACD MACD Line: The difference between the 12-period and 26-period Exponential Moving Averages (EMA). Signal Line: A 9-period EMA of the MACD line. Histogram: The difference between the MACD line and the Signal line, represented visually as bars. Significance of the MACD Histogram The MACD histogram provides a visual representation of the convergence or divergence between the MACD line and the Signal line. When the histogram turns positive, it indicates that the MACD line is above the Signal line, suggesting increasing upward momentum. Conversely, a negative histogram implies declining momentum.   Recent MACD Histogram Shift for Bitcoin As reported by CoinDesk and sourced from TradingView, Bitcoin’s MACD histogram has turned positive on the weekly chart. This marks the first time since April that the histogram has been in positive territory, signaling a potential shift towards bullish momentum. Historical Context October 2023: The MACD histogram for…

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Filed under: News - @ October 21, 2024 4:26 am