Bitcoin Weekly Momentum Flips Bullish For First Time In 2022: What This Means

Bitcoin price is back at $48,000 and with the most recent weekly close, momentum has flipped bullish for the very first time this year. With the momentum now behind bulls, what might this mean for the cryptocurrency market in the weeks and months ahead? The MACD And Bullish Weekly Bitcoin Momentum Markets are always seeking equilibrium. When a large move materializes, the same momentum that carried an asset upward, pulls it downward when the trend begins to topple. This makes momentum among the most important factors in determining if and when a trend might change. Related Reading | Baby Got Back: 50-Year Veteran Trader Compares Bitcoin Bottoms Few tools measure momentum better than the Moving Average Convergence Divergence. On weekly timeframes, the logarithmic MACD has opened with green on the histogram and formed a bull cross of the MACD line and signal line. It marks the first time the signal has appeared in all of 2022. Weekly momentum only now opened bullish | Source: BTCUSD on TradingView.com The above chart demonstrates that momentum shifts tend to yield significant trend changes, but tend to lag behind precise tops or bottoms. It is for this reason that the MACD is considered a “lagging indicator.” Lagging indicator or not, the results are what matter. Below represents an analysis of past bull crossovers. Red rallies failed to product significant new ATHs, but on average still yielded a 40% gain....