The creators of Glassnode, an analytics platform, have identified a key indicator that suggests a bullish trend for Bitcoin (BTC) is emerging once again. Jan Happel and Yann Allemann, who go by the name Negentropic on the social media platform X, believe that a particular indicator that accurately predicted Bitcoin’s significant rally earlier this year is now indicating another potential upward movement.

The indicator in question is the moving average convergence divergence (MACD) crossover. According to the co-founders, Bitcoin experienced a low point in January 2024 and then rallied out of a descending wedge pattern, with the MACD showing a bullish cross-over. In April 2024, Bitcoin once again hit a low point after declining in a descending wedge, and now the MACD is signaling another bullish cross-over. This has led the co-founders to speculate that a strong rally could be on the horizon.

In addition to the MACD analysis, Happel and Allemann also suggest that Bitcoin is exhibiting a bullish bull flag pattern, which further supports the idea of an upward trend. They do, however, anticipate some near-term volatility in Bitcoin’s price, including short-lived dips.

The analysts believe that these dips could present buying opportunities, particularly as Bitcoin’s 50-day exponential moving average (EMA) near $62,000 could provide support. They project a potential rebound to $72,000. They note that shorter EMAs typically indicate a tendency to buy, while longer EMAs suggest a preference for selling. Given Bitcoin’s recent significant gains, they expect the market to absorb these gains, and therefore, utilizing short-term dips for strategic buying could be a prudent move during this consolidation phase within the broader bullish trend.

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

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