Bitcoin Price Consolidation Suggests Potential Rally Following MACD Signal

Bitcoin’s price is consolidating between $83,200 and $85,800, potentially indicating a momentum shift as indicated by a MACD bullish cross. Analysts suggest a significant price move could occur with a decisive break beyond these levels. The BTC hashrate has reached a record high, hinting at undervaluation, while the current trading price is $84,772.

Bitcoin (BTC) has been consolidating within a narrow range between $83,200 and $85,800. Crypto analyst Titan of Crypto notes that this stability may precede a shift in momentum, highlighted by a recent bullish cross on the Moving Average Convergence Divergence (MACD) indicator. This suggests potential upward movement in BTC’s price trajectory.

Analyst Ali Martinez reported that BTC is currently trading near its established upper boundary at $85,800, with robust support observed at $83,200. He posits that BTC could rebound towards the midpoint of around $84,500 or test the upper limit of the channel. Fellow trader Daan Crypto Trades supports this analysis by commenting on the tight 4% trading range, indicating that numerous long and short positions are active, possibly leading to a significant price movement.

Daan Crypto Trades urges investors to monitor BTC for a decisive breakout: a move below $83,000 or above $86,000 could signal a new major price trend. Similarly, Merlijn The Trader anticipates a potential short squeeze, suggesting a brief dip might liquidate long positions, allowing BTC to trap short sellers and surge upward afterwards.

In another update, Titan of Crypto highlighted that BTC’s MACD has exhibited a bullish cross on the 3-day chart, signalling a possible momentum shift that could push prices towards $135,000. A MACD bullish cross occurs when a short-term trend surpasses a long-term trend, suggesting strengthening upward momentum. Historically, the last similar MACD cross led to a price increase of over 90%.

Despite this bullish outlook, BTC faces several significant resistance levels in the short term. Meanwhile, the asset’s hashrate has recently reached a new all-time high, hinting that BTC may currently be undervalued. As of now, BTC is trading at $84,772, reflecting a 0.7% decline over the last 24 hours, indicating volatility in the market.