November’s monthly candle close resulted in the Moving Average Convergence Divergence (MACD) crossing bearish for the first time since May 2018.

The monthly MACD on #bitcoin just had a bearish cross.



Yikes. pic.twitter.com/kOB65aOAq3 — Byzantine General (@ByzGeneral) December 1, 2019

The one prior to Bitcoin’s extended bearish move from the $10,000 region to the $3,000 region.

The MACD is a trending-following momentum indicator that shows the relationship between two moving averages of a security’s price.

Dave the Wave, a notable pseudonymous trader recently published

BTC Monthly MACD – Worried? You Shouldn't Be – #BLX TradingView https://t.co/ibZ3PMOc3P — dave the wave (@davthewave) December 29, 2019

a TradingView post concerning the bearish MACD reading on Bitcoin’s monthly chart. He urged investors not to be worried about the crossover that just occurred.

Dave added that, in the previous price cycle, even as price bottomed, the monthly MACD continued to decline for a full 8 months.

He attributed this odd-on-the-surface trend to the fact that the MACD is a trend-following indicator, but not a leading indicator in price prediction. He remarked that the MACD is signalling that the bottom is at least near, if not happening already.

Dave didn’t specifically make any price prediction based on the aforementioned TradingView post. However, he is notably starting to flip bullish on Bitcoin.

The analyst earlier said he expects for the one-week MACD to see a bullish crossover early next year.



Weekly MACD shaping up to re-cross bullishly soon to confirm the continuation of the next cycle.



Believe it or not, if the cycle is to be measured peak to peak, we may be near half way through the next cycle already. pic.twitter.com/7lSBthYqPt — dave the wave (@davthewave) December 23, 2019

Bullish MACD readings on Bitcoin’s one-week chart marked the start of previous bull runs, including the recent Q2 surge.

Featured Image Courtesy of Shutterstock.