The Key Indicator Of Prices On Bitcoin Turned Bearish For The First Time Since December 2018

The Key Indicator Of Prices On Bitcoin Turned Bearish For The First Time Since December 2018

For the first time in seven months, the key technical indicator of prices for Bitcoin has become bearish. The moving average convergence divergence histogram (MACD) – an indicator that is widely used by traders to determine trend changes, fell below zero on a three-day chart for the first time since December 21, 2018.

The intersection of the histogram below zero is considered a sign of a trend change from bull to bearish, and a move above zero, respectively, means the opposite.

Some traders claim that MACD is based on moving averages, so it tends to lag behind current prices. Although it is difficult to argue with this statement, we have to admit that, historically, this indicator has always predicted the behavior of market participants.

Source: Coindesk.com

As you can see in this screenshot, the drop in MACD below zero in the first week of January 2018 marked the beginning of a bear market, when the price dropped sharply from 17,000 to 6,000 US dollars. After that, the BTC price recovered to a level above $11,700 by the end of February 2018, but the MACD indicator could not cross above zero in early March, and the price went down again.

It is better not to believe only one indicator, it is always necessary to check information from different sources.

We want to remind:

Pullback Over? Bitcoin Bounces $600 from $11K Price Support

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