Bitcoin’s MACD Prints Strongest Bull Signal In Over a Year

The moving average convergence divergence (MACD) has become the latest charting indicator to signal bitcoin may soon see a trend reversal that could put an end to its months-long price decline.
As reported, the money flow index (MFI), an indicator used to identify buy and sell pressure, created a divergence Sunday widely considered to be an early sign of a bearish-to-bullish trend change, while last week, bitcoin saw a bearish crossover of its 50- and 100-week moving averages, a first since 2015.
As such, the MACD became the latest in a series of indicators, that when applied to bitcoin point to seller exhaustion and a potential trend reversal as of Monday. The MACD, by definition, turns two trend-following moving averages into a momentum oscillator by subtracting the longer-term moving average from the shorter-term moving average. The price trend is considered to have turned bullish when the MACD line crosses above the signal line, the 9-period exponential moving average of the MACD line, at which point the histogram rises above the zero line. The higher the histogram, the father apart the MACD and signal line are, indicating stronger momentum.