How strong is the rebound of the 60-minute MACD underwater second golden cross?

The 60-minute MACD underwater second golden cross signals potential short-term bullish reversals in crypto, especially when confirmed by volume and key support levels.

Jun 22, 2025 at 09:35 am

Understanding the 60-Minute MACD Underwater Second Golden Cross

The 60-minute MACD underwater second golden cross is a technical indicator pattern that occurs on the 60-minute chart. It refers to a situation where the Moving Average Convergence Divergence (MACD) line crosses above the signal line while both are below the zero line, and this crossover happens for the second time after an initial bullish attempt failed.

This pattern is closely monitored by traders in the cryptocurrency market due to its potential to indicate a short-term reversal in price direction. Since crypto markets are highly volatile, such signals can be critical for timing entries or exits. The "underwater" part implies that the asset is still in a bearish phase, making the second golden cross more significant than the first one.

Why Is the Second Golden Cross More Powerful Than the First?

The first golden cross often lacks confirmation from volume or broader market sentiment, especially during downtrends. Traders may treat it as a false signal if there’s no follow-through in price action. However, when a second golden cross forms under similar conditions — with both the MACD and signal lines still below zero — it suggests stronger momentum building up beneath the surface.

In crypto trading, this could mean that institutional or algorithmic buyers are stepping in after testing resistance levels multiple times. This repeated interaction between buyers and sellers increases the likelihood of a successful breakout. The second golden cross acts as a confirmation of the earlier failed attempt, enhancing its reliability as a reversal signal.

How to Identify the 60-Minute MACD Underwater Second Golden Cross

Identifying this pattern requires careful observation of the MACD histogram and line behavior:

• Open your preferred trading platform and switch to the 60-minute chart.
• Apply the default MACD settings (12, 26, 9), unless you have a customized version.
• Wait for the MACD line to dip below the signal line, then rise again.
• The first golden cross will occur when the MACD line crosses above the signal line.
• If the price doesn't respond positively and continues to fall, watch for a re-test of the MACD line.
• A second golden cross appears when the MACD line crosses above the signal line again, but both remain below the zero line.

It's important to note that not every second golden cross leads to a strong rebound. Confirmation through candlestick patterns or volume surges should be used to filter out weak signals.

What Are the Key Factors That Influence Its Strength?

Several factors determine whether the 60-minute MACD underwater second golden cross will result in a meaningful rebound:

• Market Structure: If the price is near a key support level or Fibonacci retracement zone, the chances of a bounce increase significantly.
• Volume: A sudden spike in trading volume around the second golden cross indicates institutional interest or aggressive buying.
• Timeframe Context: Confirming the same pattern on higher timeframes like the 4-hour or daily charts adds weight to the signal.
• Crypto Market Conditions: During sideways or accumulation phases, this signal tends to be more reliable compared to trending bear markets.

Traders should also look at other indicators such as RSI or Stochastic to avoid entering trades based solely on MACD signals.

Trading Strategies Using the 60-Minute MACD Underwater Second Golden Cross

To trade this setup effectively, consider the following steps:

• Entry: Enter a long position once the second golden cross is confirmed and the candle closes above the signal line.
• Stop Loss: Place a stop loss just below the most recent swing low or support level.
• Take Profit: Target the nearest resistance level or use a risk-reward ratio of at least 1:2.
• Position Sizing: Allocate only a small percentage of your portfolio to each trade to manage risk effectively.
• Confirmation Tools: Use additional tools like moving averages or trendlines to confirm the strength of the bounce.

For example, in Bitcoin trading, if the 60-minute chart shows a second golden cross forming near the $58,000 psychological level, and the RSI is showing divergence, this combination could be a high-probability entry point.

Common Pitfalls to Avoid When Trading This Signal

Despite its usefulness, many traders fail to profit from this signal due to common mistakes:

• Ignoring Larger Timeframe Trends: Even if the 60-minute chart looks promising, a bearish daily chart might negate the signal.
• Overtrading: Entering too many trades based on this pattern without proper filtering leads to unnecessary losses.
• Lack of Risk Management: Failing to set appropriate stop-loss levels exposes traders to large drawdowns.
• Chasing the Trade: Waiting too long to enter after the cross has occurred may result in missed opportunities or poor entry prices.

Avoiding these pitfalls requires discipline and backtesting the strategy across different market cycles.

Frequently Asked Questions

Q: Can the 60-minute MACD underwater second golden cross work in altcoins?

Yes, it works well in altcoins, especially those with sufficient liquidity and volume. However, due to their volatility, altcoins may produce more false signals, so using additional filters becomes crucial.

Q: How often does this pattern appear in major cryptocurrencies like Bitcoin or Ethereum?

Depending on market conditions, this pattern can appear several times a month. In choppy or consolidating markets, it tends to form more frequently than in strong trending environments.

Q: Should I combine it with other indicators?

Absolutely. Combining the 60-minute MACD underwater second golden cross with RSI, volume analysis, or support/resistance levels improves accuracy and reduces the risk of false breakouts.

Q: What if the price breaks down despite a second golden cross?

In such cases, it’s essential to respect the stop-loss and reassess the market structure. False signals are part of trading, and managing them effectively separates profitable traders from the rest.