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Bitcoin price experienced one other roller coaster ride last week, rising to over $113,000 by midweek before plummeting back all the way down to around $107,000. While the leading cryptocurrency's price motion has stabilized over the past few days, market uncertainty still appears to be the order of the day.
However, Bitcoin price appears to be leaning more towards a downtrend, as suggested by the negative shift of a relevant technical indicator over an prolonged time frame. Below you can find out what happened to BTC price within the last 4 instances when this indicator turned bearish.
BTC price vulnerable to 70 percent correction: analyst
In an October 24 post on social media platform X, crypto analyst Ali Martinez expressed a pessimistic outlook for Bitcoin price. The online expert revealed that the market leader could have returned to a usual position, which previously often resulted in significant losses (around 70%).
This bearish prediction relies on the changes within the Moving Average Convergence/Divergence (MACD) indicator, which shows the connection between the moving averages of the value of an asset (on this context, the value of Bitcoin). Typically, a MACD line cross above the signal line is a bullish sign for the asset's price.
Meanwhile, if the MACD line crosses the signal line, it suggests that the asset could also be adopting a bearish structure. As will be seen within the highlighted chart, the Bitcoin MACD line has just crossed below the signal line on the monthly time-frame, meaning the flagship cryptocurrency may very well be preparing for an prolonged period of downward price motion.
Source: @ali_charts on X
What is much more striking is the historical development of the Bitcoin price with every MACD crossover. According to Martinez, the value of BTC has fallen by a median of 70% within the last 4 times this indicator turned negative.
The last time the moving average convergence/divergence indicator turned bearish was in September 2021, which initiated the market leader's final descent to around $16,000 in November 2022. As shown within the chart, Bitcoin price fell by greater than 70% during this era.
Looking at history, which means that the value of BTC is vulnerable to falling by 70% in the subsequent few months, so the goal at the present price is around $33,000.
Bitcoin price at a look
As of this writing, the value of BTC is around $110,540, reflecting no significant change within the last 24 hours.
The price of BTC within the day by day time-frame | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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