Bitcoin (BTC) continues to show strength as it consolidates near $83,000, with multiple technical indicators suggesting a potential breakout could be imminent. A key development has emerged as the Moving Average Convergence Divergence (MACD) indicator flashes a bullish cross on the 3-day chart, historically a reliable signal for upward momentum.
Bitcoin’s Tight Trading Range Sets Stage for Major Move
The leading cryptocurrency has established a narrow trading channel between $83,200 and $85,800, aligning with the analysis presented in recent technical studies showing key resistance at the $85K level. This consolidation phase comes as Bitcoin maintains strong support above $82,000, with over 80% of holders remaining in profit.
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MACD Bullish Cross Signals Potential Rally
Crypto analyst Titan of Crypto has identified a significant MACD bullish cross on Bitcoin’s 3-day chart, a technical pattern that has historically preceded substantial price increases. The last occurrence of this signal resulted in a 90% surge, pushing BTC from $60,000 to $108,000.
Market Structure Supports Bullish Outlook
Supporting the bullish case, crypto trader Daan Crypto Trades notes that Bitcoin has maintained a tight 4% trading range over the past four days, leading to significant accumulation of both long and short positions. This compression typically precedes a volatile move as one side of the market gets squeezed out.
Key Levels to Watch
- Support: $83,200
- Resistance: $85,800
- Breakout Target: $135,000
Additional Bullish Indicators
Bitcoin’s fundamentals continue to strengthen, with the network’s hashrate recently reaching new all-time highs. This increased mining activity, combined with the upcoming halving event, suggests potential undervaluation at current price levels.
FAQ Section
What is a MACD bullish cross?
A MACD bullish cross occurs when the short-term moving average crosses above the long-term moving average, indicating increasing upward momentum in price action.
Why is the current consolidation significant?
Periods of tight consolidation often precede major price moves as trading ranges compress and volatility decreases before a breakout.
What could trigger the next major move in Bitcoin?
A decisive break above $86,000 or below $83,000 could trigger a significant price movement as accumulated positions get liquidated.
At time of writing, Bitcoin trades at $84,772, down 0.7% over the past 24 hours, as markets await a decisive move out of the current consolidation pattern.