United

Bitcoin

The current state of the overall cryptocurrency market is experiencing a downside momentum following the approval of the spot Bitcoin Exchange Traded Fund (ETF) in the United States by the Securities and Exchange Commission (SEC). Specifically focusing on Bitcoin, the world’s largest cryptocurrency with a market capitalization exceeding $764 billion, its technical analysis suggests a heavy bearish trend according to a specific technical indicator. What and How Does “Guppy Indicator” Work? 
One such indicator is the Guppy, which, based on historical data, indicates a potentially significant decline in Bitcoin’s value. The Guppy is a technical indicator that utilizes more than 10 Moving Averages to provide signals for bullish and bearish momentum. It comprises two groups of moving averages: a short-term band consisting of 3, 5, 8, 10, 12, and 15-day exponential moving averages (EMAs), and a long-term band with 30, 35, 40, 45, 50, 55, and 60-day EMAs.
Although distinguishing between the short-term and long-term bands on the chart may be challenging, it becomes easier when observing their proximity to the candle. The band closer to the candle represents the short-term band, while the one more distant indicates the long-term band. This observation eliminates the need to consider the color of the bands for identification.
Interpreting the Guppy indicator, bullish momentum is signaled when the short-term band crosses the long-term band in an upward direction. Conversely, a bearish sign is indicated when the long-term band crosses the short-term band in a downward direction. Source: TradingView 
Examining historical data, in October 2023, a significant price surge of over 75% in Bitcoin was observed following the short-term band crossing the long-term band in an upward direction. However, on January 23, 2024,bearish momentum is indicated as the long-term band crosses the short-term band in a downward direction. Bitcoin’s technical analysis and upcoming price&nbsp; 
Considering the overall <a href="https://news.todayq.com/bitcoin-at-crucial-level-nosedive-to-38000-possible-if-this-happens/" rel="noopener noreferrer nofollow">bearish sentiment</a> in the cryptocurrency market and analyzing the chart’s price action on a daily time frame, negative signs are apparent. During this time frame, Bitcoin previously formed a head and shoulder pattern, and on January 23, 2024, a breakdown of this pattern occurred, suggesting a downside movement.
Taking all these indicators and price action into account, it is observed that Bitcoin is in a bearish trend. The latest movement saw it initially reaching the $38,000 level, and in the upcoming days, there might be a further decline of more than 8% to the $35,500 level. However, all investors and traders must understand that this analysis serves as a guide, and before making any trades, conducting personal analysis and research is crucial.
Get Crypto Trading Signals from Real Crypto Analysts. Join our Waiting List at todayq.com

Indicator that signaled Bitcoin’s October rally now signaling bearish move

Todayq News

Other articles published on Jan 23, 2024

Meta’s Digital Assets Ambitions: Maxine Waters Revisits Concerns Amid Trademark Filings and Libra...

Solana Price Prediction: Is Bloodbath to Continue Unabated

Former President Donald Trump Reiterates Firm Stance Against CBDCs

Crypto Market Update: Focus on SUI Coin and Alibaba’s New Phase

Socket Recovers Part of the $3.3 Million Stolen in a Hack

Shiba Inu (SHIB) Skyrockets 1,100% in Epic Whale Surge

Join our free newsletter for daily crypto updates!