How Bitcoin Price Could Shed 50 To 70% If Momentum Turns Down

Bitcoin price is down nearly 10% from recent highs set earlier this month, but the underlying strength of the price action is beginning to fade ever so slightly.

The weekly MACD is also turning , potentially ready to cross over for the first time in months. Here’s how such a bearish crossover could result in as much as a 50 to 70% correction in the leading cryptocurrency by market cap.

Is The Bitcoin Bull Market Coming To A Conclusion Soon?

Bitcoin by most standards has been in uptrend for a full year now, dating back to Black Thursday in March 2020. The trend began to turn slightly up even before then, dating back to the bottom of the bear market in 2018.

From that bottom, the top cryptocurrency rocketed from lows but momentum finally ran out before new highs were reached. This last push, was successful in breaking through former resistance and setting a new all-time high three times the last cycle’s peak.

Related Reading | This Bitcoin Metric Says The Bull Market Might Soon Be Over

However, things could be once again turning down, much like they did in 2019. Or worse yet, according to the Moving Average Convergence Divergence on weekly timeframes, this could be the end of the bull market for some time.

At the very least, data shows that if a bearish crossover happens – something that Bitcoin is just inches away from – a between 50 to 70% correction typically follows.

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Momentum is turning down, and past instances show steep corrections | Source: BTCUSD on TradingView.com

What Momentum Says About The Current Cryptocurrency Market Cycle

Looking at the above chart, the correlation between the logarithmic version of the MACD and past peaks are undeniable. When the MACD crosses bearish on weekly timeframes, it has been a reliable signal the top is in.

The one catch, is that the reading must be above 0.25 to be effective in spotting the top. It’s also worth noting, that each top actually happened before the bearish crossover, which is why the MACD has a…

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