As noted by cryptocurrency traders, a crucial Bitcoin price signal is about to appear

Bitcoin’s price action over the past few weeks has been considered by most traders to be boring. Since the beginning of May, the Bitcoin price has hardly deviated from $ 8,000 – $ 10,000. Only twice have the cryptocurrency moved out of this range, although those moves have seen rapid rejection at key resistance levels.

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BTC/USD 4 hours chart | Source: Tradingview

Important Bitcoin price technical signals are about to appear

As the chart below shows, leading cryptocurrencies have been caught in a tight consolidation model. Nonetheless, important market indicators indicate that a bullish breakout is near.

This shift in sentiment came shortly after Bitcoin briefly touched $ 9,800 in Monday’s trading session, the highest price in more than a week.

According to cryptocurrency trader Joe McCann, an important Bitcoin signal is about to appear.

McCann stated:

“The Moving Average Convergence Divergence (MACD) is about to see a bullish crossover. The MACD is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock’s price.”

The MACD indicator is significant because Bitcoin has historically predicted the medium-term trend. Three days after BTC hit the $ 10,500 mark in February of this year, the MACD indicator witnessed a bearish crossover. The next thing is a correction to $ 3,700.

And just after Bitcoin started recovering relief after the March crash, the indicator printed a bullish transaction. This was followed by a rally of over 50% from $ 5,000 to $ 9,000.

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Chart of BTC’s price action over the past four months with the MACD indicator

The signal has not yet appeared, but considering that BTC is pushing resistance levels, it could happen on the weekend. And considering the historical precedent of this sign, a strong rally may follow.

According to analyst Adam Li, the order books of two leading exchanges are flashing two bullish signals:

  • A Binance sell wall around ~ $ 9,450 was pulled by the seller, giving Bitcoin room to rally to the upside with minimal resistance
  • Users of OKEx have begun to build a block of buy orders around $ 9,500. This buy wall, which is amounting to hundreds of BTC, should support Bitcoin should it snap back to that level

Book order data is important in understanding Bitcoin trends as it shows the aggregate psychology of traders.

For example, before Bitcoin topped out at $ 10,500 in early June, a selling wall appeared on Bitfinex at that level. And before BTC rose from $ 6,000-7,000 to $ 9,000 in April, a buying wall appeared on Bitfinex, raising prices.

You can also check Bitcoin Price here.

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