Bitcoin (BTC), the world’s most prominent digital currency, was trading within a relatively modest range as altcoins (cryptocurrencies other than bitcoin) experience larger price fluctuations.
Bitcoin’s three-months of sideways trading may soon end with a notable price drop, as key indicator is reporting strongest bearish bias in nine months as it swimm in a sea of red, after losing 0.72% in the last 24 hours amidst an overall market downturn.
The leading cryptocurrency’s stellar rally from April’s low of $4,000 ran out of steam at highs above $13,880 at the end of June. Since then, BTC has produced a series of lower highs well above $11,000 and higher lows in $9,000 to $10,000 range.
With a reward halving due next year, many investors are expecting the ongoing consolidation to end with a bullish breakout. However, the weekly MACD histogram – an indicator used to identify trend changes and the momentum of the bearish or bullish movement – is calling a range breakdown.
The histogram crossed below zero in August, confirming a bullish-to-bearish trend change and is now seen at -206, the lowest level since the last week of December 2018, as seen in the chart below.
BTC, therefore, risks falling to the contracting triangle support, currently at $9,482. A UTC close below that level could yield a sell-off to levels below $9,000.
Amidst such bearish season, BTC hodlers and crypto experts are expecting BTC price to pick itself up towards the end of the year.