Bitcoin Faces Prolonged Downturn Amid Bearish Momentum Signal
- Bitcoin has fallen below $90,000 and is currently trading in the mid-$80,000s.
- Prominent analyst Tony “The Bull” Severino highlights a bearish crossover on the six-week LMACD momentum indicator for the first time in years.
- Historically, bearish crossovers have led to extended downturns, with past cycles experiencing declines of approximately 69% to 75% after such signals.
- Severino notes that Bitcoin’s bear-market lows typically occur between 250 and 365 days after a bearish signal, suggesting a prolonged period before recovery.
- At present, Bitcoin is down by about 11% over the last seven days and 23% over the past month.
The recent bearish crossover on Bitcoin’s six-week LMACD momentum indicator suggests that any significant recovery may be delayed. Historical data indicates that following such crossovers, Bitcoin experiences prolonged downturns before bottoming out months later.
With Bitcoin currently trading at $85,670 and showing significant declines over recent weeks, analysts like Severino caution against expecting rapid price rebounds based on current momentum trends. (Source)
