Glassnode, the analytics platform, has revealed that a key indicator is once again showing bullish signs for Bitcoin (BTC). Co-founders Jan Happel and Yann Allemann, known as Negentropic on X, suggest that this indicator, which accurately predicted Bitcoin’s rally earlier this year, is now indicating another upward movement is imminent.

The indicator in question is the moving average convergence divergence (MACD) crossover. Happel and Allemann explain that in January 2024, BTC reached a low point before rallying out of a descending wedge, accompanied by a bullish MACD crossover. On April 19th of the same year, BTC experienced another low point after a decline in a descending wedge. Now, with another bullish MACD crossover, the founders believe that a strong rally is likely to occur.

The MACD is a technical indicator used to measure the momentum of a trend. The analysts also point out that Bitcoin is currently forming a bullish bull flag pattern, further supporting the notion that BTC is poised for an upward trajectory.

Furthermore, the analysts expect near-term volatility in Bitcoin’s price, which may lead to short-lived dips. However, they suggest that these dips could present buying opportunities. BTC’s 50-day exponential moving average (EMA) at around $62,000 is seen as potential support, with a rebound target of $72,000. The use of shorter EMAs indicates a tendency to buy, while longer EMAs suggest a preference for selling. Given Bitcoin’s recent significant gains, the market may be in a phase of consolidating these gains. Therefore, strategically buying during short-term dips is seen as a prudent move within the broader bullish trend.

At the time of writing, Bitcoin is trading at $64,015, experiencing a slight decrease in the past 24 hours.

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