Expect the BTC Price to Drop if Following Bitcoin’s Moving Average Convergence Divergence indicator
During the last few weeks, Bitcoin and other digital assets have performed positively. Because of this, enthusiasts and investors were very excited about the future of the market and how it could help Bitcoin (BTC) go out from this bear trend that started at the end of 2017.
Technical Indicator Shows Bitcoin Could Keep Falling
There is a technical indicator that shows that Bitcoin could keep falling in the near future. During the last few days, Bitcoin has been operating stable close to $3,900. Volatility decreased and trading volumes increased. Nonetheless, in a recent article released by Bloomberg, they show that the moving average convergence divergence gauge is currently declining.
This indicator has been falling since mid-February, thus, this could potentially mean that the positive rally in which Bitcoin was during the last days could be finishing. February registered the first positive month for Bitcoin since July 2018.
However, Bitcoin daily gain has also dropped during the last two months. February registered a daily price increase of 0.57% while March is registering 0.22% increase.
This indicator allows analysts and traders to understand the momentum and trends related to specific assets. In a recent report released by Mike McGlone, an analyst at Bloomberg Intelligence unit, Bitcoin could enter a new lower trend in the near future.
On the matter, he said:
“The entire industry is ripe to resume a path to lower prices. Conditions are aking to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”
According to Mati Greenspan, a senior market analyst at eToro, as the crypto winter is close to an end, there are several altcoins performing very well. Some of them include Litecoin (LTC) and Binance Coin (BNB).
At the time of writing this article, Bitcoin is operating stable close to $3,900 and it has a market capitalization of over $68 billion.