Bitcoin is about to reach $160,000: MACD golden cross signal returns in October

Bitcoin has the potential to reach $160,000 in September as a classic on-chain indicator shifts to a bullish trend.

According to the latest analysis from famous trader BitBull, an important golden cross has appeared on the MACD ( moving average convergence/divergence ) chart of Bitcoin, signaling a notable bullish opportunity.

Bitcoin's MACD repeats golden cross last April

Typically, September is a period when Bitcoin tends to record poor performance, but this year could be a notable exception.

The MACD indicator compares price action across short and long time frames through two simple moving averages (SMA), which gives the bulls a reason to be excited.

On September 5th, the MACD line — calculated from the SMAs — has crossed above the signal line, which is the 9-period exponential moving average (EMA) of the MACD, used to generate buy and sell signals.

This move signals short-term price strength, but the more noteworthy point is the unique nature of this crossover.

"Bitcoin has just recorded a golden cross MACD on the daily chart. But this time it is somewhat different. This is the first time since the bottom in April that BTC has shown a bullish MACD crossover just below the 0 level," BitBull explained.

Daily BTC price chart with MACD data | Source: BitBullNegative MACD values reflect short-term downtrends, but this new crossover signal is adding momentum to the market's recovery potential.

"The last time this happened, BTC surged 40% in just one month and reached a new historical peak," BitBull emphasized.

If history repeats itself, BTC could very well reach the milestone of 160,000 dollars — a figure that has become the target many investors are hoping for for the peak in 2025.

Inflation data drives Bitcoin price sentiment

The optimistic sentiment is gradually returning to the crypto market thanks to positive fluctuations in the macroeconomic picture.

US inflation data has supported risk assets and gold, amid increasing expectations that the Federal Reserve (Fed) will begin cutting interest rates starting next week.

The probability of the Fed's target interest rate for the September FOMC meeting (screenshot) | Source: CME Group FedWatch ToolThe Consumer Price Index (CPI) for August will be released on Thursday, with traders interested in whether a positive result could support the upward momentum of BTC.

"If we receive similar results, that will confirm the possibility of interest rate cuts at the end of this month and the market will react positively," famous trader Jelle summarized in a part of the analysis ahead of the CPI on X.

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