A widely followed momentum indicator has turned bullish for the first time since April. This shift is similar to what happened at the start of the late 2023 rally and in late 2022. It often signals the end of a tough downtrend.

Recently, a bitcoin (BTC) indicator that pointed to seller exhaustion back in early September has flipped bullish. This strengthens the case for a potential rise above $70,000.

The moving average convergence divergence (MACD) histogram, a key tool in technical analysis, has turned positive on the weekly chart. This is the first time it has done so since April, according to TradingView. It shows renewed upward momentum, suggesting a bullish outcome after bitcoin's long struggle between $50,000 and $70,000.

The positive outlook aligns with the belief that the Federal Reserve's new inclination toward rate cuts, the growing chance of pro-crypto Republican candidate Donald Trump winning the November 5 U.S. election, and the weakness of the Japanese yen could push bitcoin to at least $100,000 by the end of December.

To understand MACD better: it is calculated by subtracting bitcoin's average price over the last 26 weeks from the average over the past 12 weeks. Then, a nine-week average of the MACD is created, and the difference between the MACD and the signal lines is shown as a histogram.

This indicator is one of the most closely watched in the market. Its movements in early September indicated that the downtrend was losing strength.

Since hitting lows below $53,000 in early September, bitcoin has surged nearly 30%. It reached $69,500 during Monday's trading hours in Asia.

The latest bullish signal from the MACD follows a similar indication from the "line break chart" last week. It suggests that bulls might finally break through the $70,000 mark after several failed attempts since the first quarter.

A similar MACD bullish crossover happened in October last year when bitcoin moved past the long-held $30,000 resistance. It eventually reached a record high of over $73,000 in March this year. The bullish crossover seen in late 2022 marked the bottom of the bear market.