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The MACD indicator has made a bullish crossover on the weekly chart for #Bitcoin!
The MACD indicator measures momentum and price trend by comparing two moving averages of Bitcoin's price.
How is it read?
- Bullish crossover → Buy signal
- Bearish crossover → Sell signal
- Larger bars → Stronger momentum
- It tells you when the trend starts, not when it ends.
Indicator accuracy:
- Good for identifying the start of major trends
- Stronger on the weekly timeframe
- But not always precise because it is a lagging indicator (comes after the move has started).
Its limitations:
- Gives false signals in choppy markets
- The crossover may occur after a significant rise has already happened
- Does not determine the strength or duration of the rally... It is considered a relatively strong positive signal, but should never be relied upon alone...
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