Analyst Warns Bitcoin’s 6-Week LMACD Shows Bearish Momentum

Bitcoin is currently trading in the mid-$80,000s after slipping below $90,000, raising concerns about the timing of the next major rally. Prominent crypto analyst Tony "The Bull" Severino highlights a bearish crossover in the 6-week LMACD momentum indicator, suggesting a potential long-term downtrend.

Key Points

The 6-week LMACD has crossed bearish for the first time in years, indicating downward momentum.
This indicator is known for confirming long-term trend changes, with previous crossovers followed by extended downturns lasting up to 861 days.
Bear-market lows historically appear between 250 and 365 days after a bearish flip, not immediately.
Past downturns saw drawdowns of approximately 69% to 75% after the LMACD flipped bearish.
The current crossover remains unconfirmed for another 15 days, but aligns with patterns from past cycles.
Severino advises caution, noting that rapid upside is unlikely and a significant recovery may be months away.
Bitcoin's price could continue to hover at current levels or decline further before entering a new bull phase.

At present, Bitcoin trades at $85,670, having decreased by 11% over the last seven days and 23% over the past 30 days. This analysis suggests investors should prepare for a potentially prolonged period of low prices.