HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Bitcoin Death Cross On Monthly MACD Spells Doom For December

Bitcoin 2019/12/02 16:30 by Emilio Janus
Bitcoin death cross on MACD spells doom for december

A bearish cross on Bitcoin’s monthly moving average convergence/divergence (MACD) indicator could spell challenging times ahead. Such crosses occur when the 26-week moving average (MA) of BTC price goes above the 12-week MA.

A Cross Into Bearish Territory

As pointed out in a tweet yesterday by commentator, Byzantine General, the 12-week MA fell below the 26-week MA on the monthly scale. This indicates that a negative short term trend is having more of an impact than underlying movements in BTC price.

In general, indicators on higher time-frames give stronger signals, so a bearish cross on the monthly chart is seen as especially bad.

Bitcoin has been struggling to regain its upwards price momentum from earlier in the year, which saw the end of 2018’s crypto winter, with gains of over 300%.

Since then the market has trended slowly downwards, with occasional signs of a breakout, but nothing which could overcome upper resistance. Similarly, there have been occasional crashes, although these have so far been met with strong support.

Bitcoin Indicators Aren’t Always Accurate

Back in June, Bitcoinist reported on a bullish cross on the monthly MACD. This occurs when the 12-week MA crosses above the 26-week MA, and signals that short term growth is outpacing the longer term upwards trend.

The bullish cross in June was only the third in Bitcoin’s history, and the two previous examples had preceded periods of parabolic growth in Bitcoin growth.

However, this time the cross occurred when BTC had already risen from lows of just over $3000 to break $9k. Whilst the rally did continue for another week to reach this year’s local high of almost $14k, it then fizzled out.

We certainly didn’t get the parabolic growth expected from such an indicator, so we can only wait and see what plays out for bitcoin price following this bearish cross.

Are you concerned about Bitcoin’s MACD death cross? Add your thoughts below!


Images via Shutterstock, Twitter @ByzGeneral

The post Bitcoin Death Cross On Monthly MACD Spells Doom For December appeared first on Bitcoinist.com.

0 Like(s)



You should also read...

Bitcoin 02/12/19 00:47 by Nick Chong
Bitcoin Price’s November Close Triggers Medium-Term Sell Signals
Earlier today, NewsBTC reported that CryptoThies, a popular analyst, noted that the Chaikin Money Flow (CMF) for Bitcoin was trending positive. The CMF, an oscillating indicator that is derived from t...
Read More
Bitcoin 13/12/19 18:00 by Tony Spilotro
Monthly Bitcoin Indicator Flips Bearish, But Still Following Path to New ATH
In the crypto market, there’s an ongoing bullish bias that constantly permeates the market. However, there’s no denying that the entire market, including Bitcoin, has been in a downtrend for the l...
Read More
Bitcoin 29/03/20 04:01 by Nick Chong
These 3 Factors Show Bitcoin Has Further to Fall After Hitting $6,000
Over the past 24 hours, Bitcoin hasn’t performed too well. After maintaining the $6,700 support for a number of days, the cryptocurrency tanked on Friday evening in a move that shocked investors...
Read More
Bitcoin 01/04/20 14:40 by Yashu Gola
Three Key Reasons Why Bitcoin Could Plunge Below $5,000 in April
Bitcoin prices plunged sharply over the first three months of the year as concerns about the global coronavirus pandemic and its impact on the economy grew. The benchmark cryptocurrency closed the yea...
Read More
Bitcoin 06/06/20 21:56 by Nick Chong
Bitcoin Price Looks Like a “Carbon Copy” of Gold, and That’s Bad for Bulls
Since the $8,600 lows seen at the start of the week, Bitcoin has mounted a strong comeback, recovering to ~$9,800. A growing number of analysts, however, have said that the recovery is just noise in a...
Read More