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Bitcoin’s MACD Histogram Drops Below Zero, Signaling More Pain for the Bulls

  • Alex Dovbnya
    📰 News

    Historically, this bearish turn by MACD is a surefire indicator of a major Bitcoin price drop   

Bitcoin’s MACD Histogram Drops Below Zero, Signaling More Pain for the Bulls

The moving average convergence divergence (MACD) histogram, a highly important technical indicator that allows determining trend reversals, has turned bearish for the first time this year. 

The Bitcoin price is struggling to touch $11,000 as a result yet another major correction.

It’s time to start worrying  

This is a troublesome sign for the bulls given that this indicator was able to accurately mark the beginning of the bear market in January 2018. 

Back then, the Bitcoin dropped from its current ATH of $20,000 to $6,000 in less than a month. The MACD histogram was also well below zero when Bitcoin was bottoming out at $3,100 in December 2018.

 The MACD histogram
image by Coindesk, TradingView   

Notably, the histogram managed to stay in the green when Bitcoin plunged to the $9,800 level on July 2, but now bears are holding sway after BTC’s most recent downturn.

Looking at sub-$9,600

At the time of writing, the Bitcoin price is sitting at $10,494 as it continues to shed its daily gains. Considering that the MACD indicator was able to show every trend reversal over the past two years, there is every reason to expect a four-digit price tag once again this year.

If buyers are exhausted enough, they might not even see this as a good entry price, which would prompt a drop below the $9,600 level (Bitcoin’s July 2 low).

Cover image via cryptocomes.com
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About the author

Alex covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. He’s a firm believer that Blockchain has the potential to reshape pretty much every business out there, and cryptocurrencies are only a stepping stone to the upcoming decentralized revolution.

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