Analyst Says Dogecoin LMACD Shows Signs of Rolling Over and Playing Dead The Crypto Basic
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The Bitcoin price faced a rejection following its surge to $97,000 last week. Technical expert Tony Severino has commented on this development and alluded to the LMACD indicator, which has revealed what is next for the flagship crypto.
What Is Next For The Bitcoin Price After Rejection At $97,000
In an X post, Tony Severino stated that multiple BTC timeframe analyses using the LMACD indicator suggest that the Bitcoin price is in a precarious position. He remarked that if the daily momentum crosses bearish, it could prevent the weekly bullish crossover and pull the weekly LMACD below zero. This would cross the monthly LMACD back bearish.
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With several important timeframes in sync, Severino warned that market participants could see a more aggressive down move for the Bitcoin price. On the other hand, the technical expert noted that the daily LMACD diverging upward could cross the weekly bullish and avoid another monthly crossover, which could be bullish.
However, he suggested that a Bitcoin price decline is more likely at the moment, as the monthly LMACD is the most dominant of the three signals, which looks to hint at a downtrend. He added that this indicator also has the strength to pull the other timeframes with it. Severino failed to mention how low BTC could drop on this projected price decline.
Meanwhile, crypto analyst Ali Martinez also warned about a potential Bitcoin price decline. In an X post, he stated that BTC could soon pull back as the TD Sequential indicator is flashing a sell signal. The analyst warned that if Bitcoin loses the $94,765 support level, it could drop to as low as $90,000 or even $86,000.
How History Could Repeat Itself For BTC
Crypto analyst Rekt Capital raised the possibility of the Bitcoin price repeating a similar move from last year. For history to repeat itself, he noted that BTC would need to reject from $99,000, hold above $93,500, break the $97,000 to $99,000 range, reject from $104,500, hold the $97,000 to $99,000 range as support, and then break out to new all-time highs (ATHs).
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Commenting on the current price action, crypto analyst Titan of Crypto noted that the Bitcoin price is pulling back to a key support confluence. He added that a strong reaction from this current zone would confirm that the upward trend remains intact. His accompanying chart showed that the $95,423 price level is the area to watch. Failure to reclaim this level soon enough could start a downtrend for the flagship crypto.
At the time of writing, the Bitcoin price is trading at around $94,700, down in the last 24 hours, according to data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com
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Crypto analyst Tony Severino has warned that the Bitcoin price risks a further crash. This came as he revealed a critical technical indicator, which has turned bearish for the flagship crypto, although he noted that BTC bulls can still invalidate this current bearish setup.
Bitcoin Price At Risk Of Further Crash As S&P Monthly LMACD Turns Bearish
In an X post, Severino indicated that the Bitcoin price could crash further as the S&P 500 monthly LMACD has begun to cross bearish and the histogram has turned red. This development is significant as IntoTheBlock data shows that BTC and the stock market still have a strong positive price correlation.
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The crypto analyst stated that BTC bulls can turn this bearish setup for the Bitcoin price in the next 20 days, as diverging would lead to a bullish setup instead. However, the Bulls’ failure to turn this around for Bitcoin could lead to a massive decline for the flagship crypto, worse than it has already witnessed.
Severino stated that a confirmation of this bearish setup at the end of the month could kick off a bear market or Black Swan type event similar to what happened when the last two crossovers occurred. It is worth mentioning that BTC has already crashed to as low as $76,000 recently, sparking concerns that the bear market might already be here.
However, crypto experts such as BitMEX co-founder Arthur Hayes have suggested that the bull market is still well in play for the Bitcoin price. Hayes noted that BTC has corrected around 30% from its current all-time high (ATH), which he remarked is normal in a bull run. The BitMEX founder predicts that the flagship crypto will rebound once the US Federal Reserve begins to ease its monetary policies.
BTC Still Looking Good Despite Recent Crash
Crypto analyst Kevin Capital has suggested that the Bitcoin price still looks good despite the recent crash. In his latest market update, he stated that BTC remains the best-looking chart and that everything is going according to plan for the flagship crypto. The analyst predicts that Bitcoin could still come down and test the range between $70,000 and $75,000, which he claims would still be completely fine.
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Kevin Capital remarked that the Bitcoin price could remain afloat if it holds a key market structure and the 3-day MACD resets. He added that some decent macro data could help the flagship crypto stay above key support levels. The US CPI data will be released today, which could provide some relief for the market if it shows that inflation is slowing. The analyst is confident that one good inflation report and the FOMC can help turn the tides.
At the time of writing, the Bitcoin price is trading at around $81,860, up over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com