Bitcoin Weekly Momentum Indicator Flips Bearish For First Time Since 2020

 Bitcoin Weekly Momentum Indicator Flips Bearish For First Time Since 2020




Bitcoin worth is again within the mid-$50,000 vary, after a number of rejections from resistance at above $60,000 per coin. A go to to assist ranges to check demand a lot decrease would possibly quickly turn into a actuality now {that a} technical indicator measuring momentum has flipped bearish for the primary time since 2020.

Right here’s what this might imply for the main cryptocurrency by market cap’s present bull run.

Bitcoin Momentum Turns Bearish For First Time Since Late 2020

When Bitcoin broke above $13,000 and set the next excessive for the primary time past the 2019 peak, momentum carried the cryptocurrency tens of 1000’s of {dollars} larger. On the present peak, every BTC was promoting for a excessive of just under $62,000 however after repeated failed makes an attempt to rally larger, that bullish momentum is starting to fizzle out.

RELATED READING | A DECREASE IN BITCOIN WHALES SUGGESTS A BEAR MARKET IS DUE

The Moving Average Convergence Divergence indicator, whereas thought-about a lagging indicator, has begun to show down on weekly timeframes for the primary time because the large bullish breakout again in October 2020.

Bitcoin weekly LMACD

Bitcoin has crossed bearish on the weekly LMACD for the primary time because the bullish breakout in October 2020 | Supply: BTCUSD on TradingView.com

Each a bearish crossover of the 2 transferring averages and the histogram flipping pink means that momentum has begun to show downward, and a correction is probably going.

The sign is simply legitimate if the weekly candle closes under round $54,500, by which the bearish crossover will likely be confirmed.

Lagging MACD Has Close to-Excellent Monitor Report For Calling Crypto Tops

Bulls, nevertheless, nonetheless have a number of days left to uncross the at the moment bearish sign. In the event that they don’t, bears might take over for weeks to return. Previous bearish crossovers on weekly timeframes have marked mid-to-long time period tops within the cryptocurrency market, together with each the 2013 and 2017 bull market peaks.

RELATED READING | THIS ON-CHAIN METRIC SAYS BITCOIN RISK IS THE HIGHEST IN THREE YEARS

Nevertheless, there was additionally such a crossover on the 2019 peak, which clearly wasn’t a long-term prime resulting in an prolonged bear market. That leaves the potential there for a number of twists and turns within the coming months, much like the 2017 bull run.

Bitcoin weekly LMACD zoomed

Previous cases of flipping pink on the weekly LMACD at such ranges has resulted in a bear market | Supply: BTCUSD on TradingView.com

The logarithmic MACD brushing up towards a trendline the place previous cycles topped, nevertheless, doesn’t look promising for Bitcoin bulls.

One other situation that can not be dominated out, is Bitcoin breaking via the trendline, inflicting momentum to additional soar to the upside. Such a situation might present the momentum essential to take the main cryptocurrency by market cap to costs of $100,000 and extra per coin, which analyst throughout the finance trade are projecting.

Featured picture from Deposit Images, Charts from TradingView.com



Source link

Related post