🅱️ Bitcoin Weekly | MACD Bearish Cross (Back To Basics)

Good Saturday my fellow Cryptocurrency trader, I would like to show you some classic signals today; let's go back to basics.

Let's study Bitcoin's weekly MACD, it has something to say.

As I looked at the daily timeframe, I saw the MACD being oversold and starting to turn, a bounce definitely taking place. When I check the weekly timeframe this is what I got...

—Bitcoin Weekly MACD

➖ The bearish cross happens when the MACD line (blue) crosses the signal line (orange) on a bearish bias, that is, moving down.

➖ Bitcoin's weekly MACD peaked in April 2021 and this was the start of a major correction.

➖ Another peak in November 2021 and this was the start of a bear market.

➖ Bitcoin's weekly MACD just produced a new peak in April 2024, last month, and the histogram just turned red. The histogram turns red because of the bearish cross.

👉 Whenever the histogram turns red on the weekly, it closes red for more than one session.

The MACD looks pretty bearish right now and it is pointing lower and this is no surprise looking at the current pattern on the chart. The chart is very weak right now and what seems like a small recovery will soon transform into a bullish trap. Unsuspecting bulls will get trapped or...

It is normal to see prices bounce when a support level is hit.

Bitcoin hit as low as $57,555 coming from a high of $72,800, that's almost 22.22% (drop).

A bounce can happen and reverse right at $64,500 but it doesn't need to happen necessarily in this way. If SHORT traders become greedy and once more use more leverage than prudent then the market will adapt and react; move up. This move up can lead to $68,000 just to clear all these over-leveraged SHORTs, but that's not all. It can go to 70/72K and then come crashing back down faster than a thunder in a storm... But to be honest, it is likely that it goes straight down because the majority of the remaining players are ready to hold, or just feel complacent enough to wait patiently before the next market drop comes. And it is coming... Don't you agree?

Thanks a lot for your continued support.

Namaste.