MACD Bitcoin Indicator Cross-over Signals
MACD Center line crossovers generate signals using the center line mark. The sentiment of the btcusd market can be confirmed using the MACD center line crossovers. MACD bitcoin trading cross over above the center line mark generates bullish market sentiment while cross-over below the center-line generates bearish market sentiment.
- When the Fast-line crosses below MACD Line (not center-mark) it shows market momentum is slowing - this isn't a reversal cryptocurrency signal or a sell bitcoin signal, wait for the center-mark cross over.
- When the Fast line crosses above the MACD Line (not center mark) it shows the btcusd market momentum is slowing - this isn't a reversal cryptocurrency signal or a buy bitcoin signal, wait for the center-mark cross over.
- The Center-Line crossover bitcoin signals will be the best signals for confirming buy & sell bitcoin signals.
Using the Bitcoin chart in the example illustrated below, when MACD fast line crossed below the zero center mark, the sell cryptocurrency signal was confirmed and the btcusd market sentiment changed to bearish - downwards trend.
Also in the example illustrated below when MACD fast line later crosses above zero center mark, a buy cryptocurrency signal was generated and the btcusd market sentiment changed to bullish - upwards trend.
MACD Zero-Line Mark Crossover - Precisely When a Sell Bitcoin Signal & Buy Bitcoin Trading Signal are Generated
Oscillation of the MACD Crypto Indicator
The MACD Bitcoin indicator is an indicator that moves up and down around a zero center line mark. The center-line is the neutral measurement, values above zero will indicate bullish market trend while values below indicate bearish market trend.
The MACD indicator is also used to indicate overbought and oversold levels. When the MACD reaches overextended levels, then bitcoin is overbought or oversold. However, in a strong upward trending market bitcoin prices will stay overbought in this case it's better to buy.
Also in a strong down btcusd trending market its better to sell, because bitcoin prices will stay in the oversold region for a long time.
Overbought conditions occur above the zero line while oversold conditions occur way below the zero mark.
MACD Overbought Region - Bitcoin Trend Continuation Trading Signal