[Analysis] "Bitcoin, long-term momentum indicator 'monthly MACD' turns down…possibility of further decline"
Summary
- Reported that Bitcoin's long-term trend indicator, the monthly MACD, has shifted to a bearish signal.
- Analyst Omkar Godbole said past MACD bearish crossovers coincided with major down cycles.
- He said this signal could mark the start of a long-term down phase, urging market caution.
A key momentum indicator that gauges Bitcoin's long-term trend has issued a bearish signal, amplifying market warning signs.
On the 1st (local time), Omkar Godbole, a CoinDesk analyst, said, "The monthly moving average convergence/divergence (MACD) histogram for Bitcoin (BTC) recorded its first red bar in the negative (-) area in November, confirming a bullish→bearish shift."
He explained, "The monthly MACD's 'bearish crossover' has appeared alongside the start of major down cycles over the past decade," adding, "This indicator turned down in January 2022 immediately after the 2021 adjustment from about $70,000 to $50,000, and BTC's price subsequently fell below $20,000."
Of course, past trends do not guarantee the future, but current market sentiment is seen as weighing toward a bearish scenario. With November's decline exceeding 17%, Godbole warned, "This signal could be the starting point of another long-term down phase," urging market caution.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.![[Market] Bitcoin falls below $82,000...$320 million liquidated over the past hour](https://media.bloomingbit.io/PROD/news/93660260-0bc7-402a-bf2a-b4a42b9388aa.webp?w=250)
