Bitcoin’s Weekly Chart Shows Bear Market Likely to Worsen or Does It?

Linh Nguyen — Tue, 23 Aug 2022 09:10:13 +0000

@ Crypto Insider

The upcoming weekly chart bearish crossover has a perfect record of trapping sellers on the wrong side of the market.

There may be more pain ahead for bitcoin (BTC). That is the message from a weekly chart momentum indicator, which is about to flash the first bearish signal in over three years.

Bitcoin’s 50-week simple moving average (SMA) is trending south and looks set to drop below the 100-week SMA in a week or two, confirming the so-called bearish crossover, the first since February 2019.

While, in theory, the upcoming bearish cross would imply strengthening of bearish momentum, the indicator has a perfect record of trapping sellers on the wrong side of the market, similar to the negative SMA crossover confirmed on the three-day chart last month.

Bitcoin chart showing an impending crossover of the 50- and 100-week simple moving averages. (TradingView)

Bearish crossovers dated April 2015 and February 2019 proved to be contrary indicators – those that tell you to bet against the herd.

It remains to be seen if upcoming crossover marks peak selling. Per Delphi Digital, the cryptocurrency could bottom out in November.

“From the previous two cycles, BTC bottomed out 59 and 53 weeks following its cycle top. “Based on this, history suggests a bottom sometime around the end of November 2022 and a new cycle top in August 2025,” Delphi Digital’s Andrew Krohn wrote in a daily update sent to clients.

Past performance is no guarantee of future results, more so, as the cryptocurrency has become sensitive to macro factors like central bank policies and traditional market sentiment over the past two years.

The post Bitcoin’s Weekly Chart Shows Bear Market Likely to Worsen or Does It? appeared first on Crypto Insider.

Bitcoin ‘Bear Cross’ Raises Outlook for Bull Revival

Linh Nguyen — Fri, 08 Jul 2022 10:15:14 +0000

@ Crypto Insider

A bearish but historically contrary indicator suggests an end to the market decline and a bullish revival ahead.

Yes, you read the title right. An impending bearish crossover, a technical pattern theoretically suggesting continued weakness in the bitcoin (BTC) price, could be a trap for sellers and portend a bullish revival.

A three-day-candlestick chart shows the simple moving average (SMA) of the past 100 candlesticks is on the verge of crossing below the 200-candle SMA, confirming the first bearish crossover of the two averages since December 2018.

Historically, the crossover has marked an end of bear markets and paved the way for notable bull runs.

The averages crossed bearishly in December 2018, trapping sellers on the wrong side of the market. Bitcoin bottomed near $3,200 and spent the following three months building a base for a rally. The cryptocurrency hit a high of $13,800 by the end of June 2019.

The bear cross of February 2015 coincided with peak selling, and bitcoin began a multiyear bull run seven months later. The first bear cross, dated June 2012, also trapped sellers on the wrong side of the market.

Crossovers between longer duration moving averages are known to be contrary indicators because they are based on past data and tend to lag prices. The market is often battered, oversold and overdue for a reversal higher by the time the crossover is confirmed.

Past performance is not a guarantee of future results. That said, history could repeat itself because the Fed’s hawkishness, or anti-stimulus stance, appears to have peaked and traders are now pricing interest rate cuts for 2023.

Bitcoin was last trading near $21,730, representing a 6% gain on a 24-hour basis.

The post Bitcoin ‘Bear Cross’ Raises Outlook for Bull Revival appeared first on Crypto Insider.

SMA Archives - Crypto Insider

Bitcoin’s Weekly Chart Shows Bear Market Likely to Worsen or Does It?

The upcoming weekly chart bearish crossover has a perfect record of trapping sellers on the wrong side of the market.

Bitcoin ‘Bear Cross’ Raises Outlook for Bull Revival

A bearish but historically contrary indicator suggests an end to the market decline and a bullish revival ahead.