Bitcoin bullish cross on weekly chart paints $225K BTC price target if history repeats
Weekly MACD delivered six-month gains of 450% the last time it flipped into bullish territory.
Bitcoin (BTC) is wowing the market by holding $50,000, but a bullish metric is pointing to much larger potential gains.
Data from TradingView now clearly shows that the weekly moving average convergence/ divergence (MACD) indicator for BTC/USD has flipped from red to green.
Time for another 5.5X BTC price surge?
There is no shortage of bullish BTC price indicators this month, with everything from exchange balances to network fundamentals infirmly optimistic mode.
MACD, which produced a rare crossover earlier in August, nonetheless adds the potential for upcoming gains to be an order of magnitude larger than what the market has seen so far.
As Cointelegraph reported, the metric is a reliable indicator used to determine the overall trajectory of an asset, and Bitcoin has so far been no exception.
The last time that a bullish crossover occurred, BTC/USD saw a 5.5X price increase — from $11,500 in October 2020 to all-time highs of $64,500 just six months later.
Should history repeat itself, Bitcoin could end up at over $220,000 by the end of the year or in early 2022.
BTC/USD 1-week candle chart (Bitstamp) with MACD. Source: TradingView
Pomp sets sights on new Bitcoin “blow-off top”
It’s a prediction that tops even the more optimistic estimates for the remaining half of 2021, including stock-to-flow creator PlanB’s “worst-case scenario” of $135,000 in December.
Nonetheless, well-known names are firmly in favor of upside continuing — to the extent that they continue to go on the record in the mainstream media.
“I can’t reiterate it enough — I think that we’re going to see very, very fast price appreciation through the end of this year,” Morgan Creek Digital co-founder Anthony Pompliano told CNBC Monday.
“In 2017, Bitcoin went from $10,000 to $20,000 in 18 days as a blow-off top — it would not surprise me to see something crazy like that happen before the end of the year.”
Bitcoin’s month-to-date returns currently stand at over 20%.