MACD Histogram Triggers Bearish Signal for Bitcoin

A technical analysis tool used by traders to gauge momentum in the cryptocurrency market is flashing a warning signal for Bitcoin investors.

The Moving Average Convergence Divergence (MACD) histogram, a widely followed indicator, has crossed below zero for the third time since Bitcoin's record high in October. This bearish signal has been accurate in predicting selloffs and crashes in the market.

Historically, when the MACD histogram turns negative, it indicates a shift in momentum towards bears, leading to significant price declines. In the past, every bullish cross of the MACD was followed by weak bounces that eventually faded, paving the way for deeper selloffs.