Historically Accurate Indicator for BTC Has Turned Bullish

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  • Renowned crypto analyst, Dave the Wave, posts a bullish Tweet.
  • BTC is currently trading above the $22k level after a 0.3 percent daily gain.
  • The 9 and 20 EMA on the daily chart for BTC/USDT have also crossed bullish.

A popular crypto analyst, who goes by the pseudonym Dave the Wave and was credited with calling the crash of Bitcoin (BTC) in May 2021, has recently shared on Twitter that a historically accurate indicator has flipped bullish.

The analyst told his 125,600 followers on Twitter that the market leader’s weekly moving average convergence divergence (MACD) has recently crossed below a line that he refers to as the “zero-line”.

Historically, crossing below this zero line occurred in 2012, 2015, and 2019, and were followed by large bullish price moves, according to a chart shared by the analyst.

Historic “zero-line” crosses (Source: Twitter)

CoinMarketCap shows that the price of BTC is trading above the $22,000 level at $22,264.02, at the time of writing. The crypto market leader’s price expereinced a 1.37% gain over the past 24 hours and a 12+ percent gain for the week.

BTC/USDT daily chart (Source: CoinMarketCap)

The daily chart for BTC/USDT has also turned bullish as the 9 and 20 Exponential Moving Average (EMA) lines that recently crossed bullish on the daily chart. The cross comes after a surge in buy volume entered the market to elevate BTC’s price above the 9 and 20 EMA lines – a position it has been able to maintain for the last 5-6 days.

The Relative Strength Index (RSI) is also in overbought territory and positioned well above the RSI SMA line, which is another bullish indication.

Investors may need to practice caution with BTC’s price hitting a resistance level at $22,300 and expect a slight price pull back. The RSI indicator has also seen its slope change toward oversold territory after BTC hit the resistance level.

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