- Bitcoin’s MACD indicator flip turns bearish, signaling a potential market correction.
- Experts predict Bitcoin could fall to the $46K range as cautious sentiment dominates.
- With mixed signals and indicators, traders prepare for possible increased volatility.
Crypto Rover, a crypto analyst, has raised alarms as Bitcoin’s Moving Average Convergence Divergence (MACD) indicator turns bearish. At press time, Bitcoin is priced at $56,835.87, showing a 0.24% increase in the last 24 hours with a trading volume of $34.54 billion. Despite this modest uptick, market sentiment remains cautious.
Bitcoin’s dominance has slightly decreased, while the Crypto Fear & Greed Index points to extreme fear, sitting at 22. This bearish flip in the MACD is leading some traders to prepare for potential volatility, with some analysts predicting a price correction to lower levels.
Potential Correction Amid Bearish Indicators
The Bitcoin market is showing signs of caution as bearish technical signals emerge. Veteran analyst Peter Brandt has warned of a possible correction, suggesting Bitcoin may test the mid-$40,000 range.
This prediction aligns with Bitcoin’s recent trading pattern, marked by sharp fluctuations and intense resistance levels near $71,000 and $68,200. Despite the current price holding above $56,000, the MACD flip could signal a downturn, driving further caution among traders.
Bitcoin Falls Below $56K as Crypto Market Faces Extreme FearCautious Sentiment Prevails in Crypto Markets
Additionally, Bitcoin’s exchange balance has slightly reduced as more BTC is moved to private wallets, hinting at a long-term bullish sentiment. However, short-term trading indicators remain mixed. Futures markets are active, with a notable rise in options open interest, which may indicate preparations for increased volatility. Funding rates and long/short ratios suggest traders are cautious, waiting for clearer signals.
Gold futures have dipped by 0.38% to $2041.65, while the U.S. Dollar Index saw a minor increase. This shift suggests investors move towards less volatile assets, reflecting broader market uncertainty. As Bitcoin’s price faces potential headwinds, investors remain watchful, taking strategic positions to manage risk in an increasingly volatile market.
