Bitcoin is showing signs of recovery, and indicators are also pointing to bullish signals.

Cointelegraph reported on April 20 that some in the market are focusing on the possibility that Bitcoin could form a new floor around $75,000 after rebounding from multi-year lows below $60,000. In the short term, whether it can break above the $78,000 area again and turn it into a support line is seen as a watershed for the next upswing.

The weekly moving average convergence divergence (MACD) posted a golden cross, which is widely interpreted as a bullish signal. Crypto trader Psychodelic said the MACD showed a bullish crossover and was accompanied by a break of the trend line. He attached significance to the fact that the crossover came after the MACD fell to its lowest level ever. Similar signals in 2018 to 2019 and 2022 to 2023 were followed by Bitcoin price gains of 340 percent to 380 percent.

Analyst Mikybull Crypto also said a rising rally often followed whenever the pattern appeared. The relative strength index (RSI) also recovered to 43 recently from 21 in mid-February. Technical analysis firm Material Indicators mentioned that keeping the weekly RSI above 41 is one of the macro conditions for judging a "verified bull market". In 2019, 2020 and 2023, major gains followed after that benchmark was maintained.

Some also urged caution, saying a trend reversal is not confirmed by technical indicators alone. The recent correction was mentioned as being influenced by uncertainty surrounding the United States and the Israel-Iran war. In this environment, net buying in the spot market and steady inflows into Bitcoin spot exchange-traded funds were presented as essential conditions for breaking above highs.

By price level, the $75,000 to $78,000 range was identified as a supply zone where heavy selling orders are waiting. Trading resource Technical Crypto assessed that after reclaiming $70,000, Bitcoin is now pushing up into the key supply zone at $75,000 to $78,000, and that the area is acting as resistance.

There was also a warning that if it fails to break above $78,000, the recent rebound could end up as a "bull trap". Bitcoin Census said it would be hard to rule out the possibility that this rebound is also a trap if it fails to settle above $78,000, as in previous failed breakouts. Conversely, some also observed that if it posts a closing price above the $76,000 to $78,000 range, it could be interpreted as a signal that buyers have taken control, opening room for a further rise to $84,000.

Ultimately, the market's attention is focused on whether the bullish signals shown by technical indicators will translate into actual inflows and spot buying. Weekly MACD and RSI are showing the possibility of a rebound, but the view that Bitcoin first needs to turn $78,000 resistance into support to confirm an uptrend is gaining ground.

The bears don't want you to see this. Not only do we have a 1W MACD bullish cross ad break of trend, we have it from the lowest point the MACD has ever dropped to. In addition, during the last range above us, after 70 days, Bitcoin was at new lows. Currently, it is at new… pic.twitter.com/SF2oq1w58g