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.
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.
$BTC Price Update— Josh Rager 📈 (@Josh_Rager) July 16, 2019
A quick drop in price over the last two candles with the area to watch as support at $10,191
On the 4 hour chart, as long as it closes above that level it will continue to make higher-lows and maintain a ranging pattern
Close below that area and it's bearish pic.twitter.com/IHwxb1SG4v
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).