Bitcoin’s Moving Average Convergence Divergence indicator, which in simple words referred as MACD has shown a decline since February and it might mean that Bitcoin will soon incur some selling pressure. The MACD indicator offers traders and analysts insight into the momentum and trends of a any digital asset.
After facing a year of turbulence, Bitcoin has shown significant stability in the past few weeks and has shown low volatility. The long term buying demand for Bitcoin is deteriorating, and it means that it could provide a range of buying option for people interested in buying Bitcoin in these times.
Since Bitcoin has been consistently in the $3000 region for several months which had made businesspeople and investors quite sure about a stable situation at the Bitcoin front. But, the technical indicator says otherwise.
Although these predictions by the indicator have not entirely been on point in the past, it could have intense psychological effects in the masses as people would go into making all the wrong decisions based on those predictions.
It is worrisome because it is near this very range, before the crash of Bitcoin in 2017 which made a heavy impact on both financial and trust departments of those who invested in it. It also means that if history does repeat itself, it will plunge to a similar low.
The Ray Of Hope
It might just not be the end though. Although there are all these signs, Bitcoin will just not go down so easily this time around. The market analysis of the past few months clearly state that the firm stand Bitcoin is taking in the crypto market.
This and the renewed interest in the newer technologies related to Bitcoin could mean that it might as well just go upward from here. If these innovations come into play and let even the small retail investors be a part of the Bitcoin big game, the price will automatically go up.
There are a lot of investors who are banking on the stability of Bitcoin to invest and buy the Cryptocurrency, and if their faith is put in the right place, they might end up victorious.
But if this ends up to be the big bad plunge of Bitcoin, it may prove fatal than anything else to the crypto market. More and more people would start believing that Cryptocurrency is in fact nothing more than by bubbles, which is as we know, not true.