[ccpw id="5"]

Friday, February 10, 2023
HomeNewsBitcoin Bearish Weekly Momentum Begins To Weaken

Bitcoin Bearish Weekly Momentum Begins To Weaken


Bitcoin worth has taken a beating during the last a number of months, ensuing within the worst quarterly shut since 2011. The bearish momentum has been brutal as crippling contagion spreads throughout the cryptocurrency market.

However, bearish momentum on weekly timeframes has begun to weaken, offering bulls with their first alternative to capitalize in a while.

Bitcoin Bearish Weekly Momentum Begins To Weaken, Can Bulls Capitalize?

In the true world, momentum is the measure of velocity and mass. In finance, the time period describes the speed of pace at which an asset’s worth modifications. Considering that Bitcoin worth plummeted from above $60,000 to $20,000 in a matter of six months, bearish momentum has been a power to be reckoned with.

Related Reading | Bitcoin Weekly RSI Sets Record For Most Oversold In History, What Comes Next?

However, on weekly timeframes, the primary indicators of waning bearish momentum have been noticed.

Bearish momentum is weakening in line with the LMACD histogram | Source: BTCUSD on TradingView.com

On the MACD histogram, bearish momentum is weakening as may be seen by the histogram altering from crimson to pink.

The present state of affairs is just not an all-clear sign. Momentum will solely be thought of bullish when the histogram passes the zero line and turns inexperienced.


A inexperienced sign is not all the time a worthwhile purchase | Source: BTCUSD on TradingView.com

As the chart above demonstates, turning inexperienced doesn’t all the time verify important upside. So why then may bulls wish to contemplate the present setup? As the saying goes, “when in doubt, zoom out.”

Related Reading | Bitcoin Monthly Tags Lower Bollinger Band, Tool’s Creator Hints At Bottom

Upon zooming out, bearish weekly momentum waning turns into extra important when you think about the extent at which the shift in momentum is happening. The weekly MACD is at present giving a studying of -0.20. Past bear market bottoms got here in a fraction of a degree beneath at -0.21.


Momentum is popping the place previous bottoms have been put in | Source: BTCUSD on TradingView.com

This remains to be no assure that bulls will regain the higher hand. However, may a 3rd backside at this stage find yourself being the attraction crypto holders have been hoping for? Bulls might want to capitalize on the potential momentum shift, and observe by way of – pushing the histogram into the inexperienced.

Reclaiming $29,000 could be a powerful first step, however given the potential of a recession forward, traders would probably want extra convincing at a return to $50,000 or above.

If bearish momentum returns earlier than the week is over and pushed the histogram into the crimson, bulls can neglect a couple of rally for a short while longer.

Follow @TonySpilotroBTC on Twitter or be a part of the TonyTradesBTC Telegram for unique every day market insights and technical evaluation schooling. Please notice: Content is academic and shouldn’t be thought of funding recommendation.

Featured picture from iStockPhoto, Charts from TradingView.com


Please enter your comment!
Please enter your name here


TeraWulf newest bitcoin miner to restructure debt, inventory dives (NASDAQ:WULF)

South_agency/E+ by way of Getty Images TeraWulf (NASDAQ:WULF) inventory sank 28% in Thursday afternoon buying and selling after the bitcoin...

How I might make investments $20,000 in ASX 200 dividend shares in 2023

Image supply: Getty Images We’re nonetheless pretty new to 2023, regardless of the primary month simply passing us by. But what a yr it...

NFT: Polygon beats Ethereum on OpenSea

It’s all true: Polygon, by means of the main world market OpenSea, bought extra particular person NFTs than Ethereum for the second consecutive month, in...

Most Popular