A new Bloomberg report is in the news on our DC Forecasts Bitcoin news site – in which the key price movement indicators show that the most dominant cryptocurrency, Bitcoin (BTC), could be heading for another move downward.
The report states that “technical gauges signaling long-term buying demand for Bitcoin are deteriorating” and in that manner, the buying pressure could soon increase. Bloomberg also noted that seminal crypto’s Moving Average Convergence Divergence (MACD) indicator has been mowing in the low levels since mid-February.
For ones of you who don’t know, the MACD is a trend-following indicator of momentum which presents the direct relationship between the two moving averages of the price of a security. Meanwhile, Bitcoin has tested the $4,000 mark many times over the past weeks. However, the most dominant cryptocurrency has not been able to break above it for a meaningful period of time.
As Bloomberg states, until Bitcoin breaks through this level, it is very likely to face selling pressure. The featured analyst in the post, Mike McGlone, said:
“The entire industry is ripe to resume a path to lower prices. Conditions are akin to November [2018], just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”
Many other industry experts have suggested that investors are forgoing Bitcoin in order to move their money into altcoins. As one senior analyst at eToro named Mati Greenspan said in an email sent to Bloomberg:
“Bitcoin’s 20% gains isn’t a poor performance. It’s just that investors are seeing more potential in some of the smaller tokens at the moment. As we approach the culmination of the crypto winter, we’re actually seeing some of the altcoins delivering spectacular gains in the last few weeks. We are now in what industry insiders like to call alt-season.”
He also noted the following:
“It’s just that investors are seeing more potential in some of the smaller tokens at the moment. As we approach the culmination of the crypto winter, we’re actually seeing some of the altcoins delivering spectacular gains in the last few weeks. We are now in what industry insiders like to call alt-season.”
Right now, data shows that the Bitcoin MACD is right now at 44.3, pointing to a new “sell” recommendation while the coin is trading below $3,900 and is stable on the day.
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