Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Bitcoin’s price could see a significant surge, potentially reaching $160,000, following the emergence of a key “golden cross” on its daily Moving Average Convergence/Divergence (MACD) chart, according to popular trader BitBull. This bullish signal, which occurred on September 5, marks the first time such a cross has appeared below the 0 line since April, an event that historically preceded a substantial rally for the cryptocurrency.
Bitcoin’s MACD Flips Bullish
The MACD indicator, which tracks price momentum by comparing two moving averages, flashed a bullish signal on September 5. On this date, the MACD line, derived from simple moving averages, crossed above its signal line, which is a 9-period exponential moving average of the MACD line.
This particular golden cross is drawing attention because it occurred below the 0 line, a detail highlighted by BitBull. According to the analyst, a bullish cross in this negative territory indicates a potential rebound from a local downtrend, providing fresh impetus for market recovery.
Historical Precedent and Price Targets
BitBull noted the significance of this specific MACD event, stating, “For the first time since April bottom, BTC had a MACD bullish cross below 0 line.” The last time this configuration appeared, Bitcoin reportedly rallied 40% in a month and reached a new all-time high.
If this historical pattern were to repeat, some speculation suggests Bitcoin’s price could target $160,000. This figure is also a popular price target often cited for Bitcoin’s potential high in 2025.
Macroeconomic Tailwinds Support Sentiment
Beyond technical indicators, broader macroeconomic factors are contributing to a positive sentiment in the cryptocurrency market. Recent US inflation data has buoyed risk assets, including gold and cryptocurrencies, amidst growing expectations for interest-rate cuts from the Federal Reserve.
Traders are closely monitoring upcoming economic reports, including the August Consumer Price Index (CPI) print, which is anticipated to be released soon. A favorable CPI outcome could further reinforce the bullish momentum for Bitcoin and the wider market, as popular trader Jelle noted on X, suggesting it could confirm rate cuts and elicit a positive market reaction.
The combination of a historically significant MACD golden cross and supportive macroeconomic conditions is fueling optimism among some analysts for Bitcoin’s short-term price trajectory, with a speculative eye on the $160,000 mark.