6 hour ago
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Signal Behind Past 60% Bitcoin Crashes Returns, Price Hits $88,800
An analyst highlighted a technical analysis signal indicating potential price declines for Bitcoin. The Moving Average Convergence/Divergence (MACD) indicator has turned bearish, with the MACD line crossing below the signal line.
- The MACD indicator consists of two lines: the MACD line and the signal line. Crossovers can signify buy or sell signals.
- The recent crossover indicates bearish momentum, similar to past instances that led to more than 60% declines in Bitcoin's price.
- Analyst Ali Martinez suggests this pattern could point to a $40,000 level if history repeats itself.
- Additionally, a "death cross" between Bitcoin's 50-day SMA and 200-day SMA has formed, marking local bottoms in previous years but initiating a bear market in 2022.
- Bitcoin's price is currently around $88,800, down over 4% in the past week.
The situation remains uncertain, as it is unclear whether these patterns will lead to similar outcomes as before.