By CCN Markets: According to technical analyst Eric Thies, a key technical indicator may signal strong long-term momentum for bitcoin for the first time since 2015.
The last time the 1-month moving average convergence divergence (MACD) achieved a signal cross, the bitcoin price increased from $400 to ultimately $20,000 within a three-year span.
Positive macro landscape for bitcoin
As the bitcoin price spiked from $3,900 to $8,000 in less than three months by outperforming most assets and every major stock index, technical analysts generally anticipated a large pullback to hit the market.
One cryptocurrency trader stated that major assets have been unable to break out of key resistance levels as of late, which may potentially indicate the formation of a short term top and could increase the likelihood of a hard reset or a big pullback.
The trader said:
We’ve seen no major break out above a significant horizontal resistance level with accompanying volume. LTC / BTC appears to have topped out, and I believe #litecoin was a major catalyst in the past week’s ‘rally.’ We may still see a hard reset yet.
My bias still leans bullish as it has been, but there is no confirmation or guarantee in my eyes we continue up from here before knocking down a bit. It’s been more than a few days of ‘green’ but there is still every reason to be cautious until we get clarity we can count on.
However, despite the warnings of a possible correction in recent weeks, the crypto market has continued to demonstrate strong momentum led by the rally of litecoin.
Investors anticipating the block reward halving of litecoin that occurs every four years led the price of litecoin to spike substantially against both bitcoin and the U.S. dollar.
Year-to-date, litecoin is up about 345 percent against the U.S. dollar as the…