While altcoins accompanied the decline in Bitcoin, Ethereum (ETH) and major altcoins also experienced significant losses.
According to CoinMarketCap, Ethereum fell 6% to $2,820 in the last 24 hours; XRP fell 6.7% to $2; and Solana (SOL) fell 7% to $126.
This decline is thought to be due to growing concerns about global liquidity withdrawals, as the Bank of Japan hinted at an interest rate hike, highlighting the possibility of a decrease in yen-based carry trades.
The recent decline in Bitcoin has opened the door to further declines, with one analyst pointing to a long-term bearish signal for Bitcoin, pointing to $74.5,000.
Accordingly, market analyst Omkar Godbole said that BTC’s monthly MACD indicator has turned negative/bearish.
According to the analyst, this signals a potentially prolonged bearish trend for Bitcoin, as has been the case in past cycles.
Accordingly, the analyst noted that this indicator has historically signaled the beginning of major bear markets, including those in 2014, 2018, and 2022.
“Similar patterns emerged following bearish MACD crossovers in both 2018 and 2014, and these signals preceded deepening bear markets.”
The analyst said that although historical data does not guarantee another decline, the MACD crossover may not necessarily lead to a decline, but the current market environment supports a downtrend.
While the analyst warned investors to be wary of downside volatility, he said initial support is at $84,500, marked by the trendline connecting the ascending lows of 2023-2024.
If this level is broken to the downside, the analyst said the Bitcoin price could fall to the April low of around $74,500 and then the 2021 peak around $70,000, which would be the next supports.
*This is not investment advice.
Continue Reading: Bitcoin’s Critical Indicator Turns Red! “It Had Started a Bear Market Before!”
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Author: NixCoin
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