Analyst: Bitcoin momentum indicators weaken, if historical decline repeats, BTC may fall below $60,000

BlockBeats news, November 13 - Crypto analyst Omkar Godbole stated in a post that Bitcoin's weekly MACD histogram fell below the zero line this week, indicating weakening price momentum. The weekly bearish signal will only be confirmed if the histogram remains negative at Sunday's weekly close. At the price of approximately $69,000 at the time of publication, a 16% decline would push Bitcoin below $60,000 and near this year's low of around $57,700.

Statistics show that since November 2012, Bitcoin's weekly MACD has generated 24 bearish signals. In 13 of these instances, Bitcoin fell at least 16% from the signal confirmation before the indicator turned bullish again. Among these 13 cases, 5 reached this decline within one week, 10 within four weeks, with a median time of three weeks. In November 2018 and February 2014, Bitcoin fell 38% and 35% respectively within one week after signal confirmation.

However, the other 11 instances saw declines of less than 16%. The most recent bearish signal occurred in June this year, when Bitcoin only dropped about 3% to $57,700 before rebounding. This signal comes amid outflows from U.S. spot Bitcoin ETFs and a strengthening dollar, but a single technical indicator is insufficient to determine whether Bitcoin will retest its yearly low.

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