After Bitcoin was unable to maintain its position above the $100,000 psychological threshold earlier this year, its bullish momentum has slowly deteriorated. Over the past two months, the pullback has intensified, with Bitcoin trading between $75,000 and $79,000 in April. The outlook is increasingly bearish, as the crypto sector seeks technical clarity amid mounting pressure in traditional markets, particularly in equity markets.
In light of this situation, crypto analyst Tony Severino has pointed out that the current setup presents one significant move that could potentially overturn extended bearish momentum.
Tony “The Bull” Highlights Crucial LMACD Inflection Point to Counter Bearish Narratives
According to Tony “The Bull” Severino, a key chart development is the upcoming bearish crossover on Bitcoin’s 1-month LMACD indicator. The LMACD, which monitors market momentum on a logarithmic scale, currently indicates that the blue line is approaching a crossover beneath the orange signal line.
Related Reading: Crypto CEO Explains Why The Bitcoin Bull Market Has Concluded With a Drop Below $80,000
This impending crossover is recognized as a significant bearish confirmation, and its emergence coincides with increasing weakness in broader markets, including traditional indices such as the S&P 500 and Nasdaq.
Although the crossover has not yet been validated by a monthly close, its presence at the start of April raises concerns. Severino clarified that unless a substantial rally occurs before the month concludes, the blue line is set to cross below the orange line, which would officially shift momentum to bearish. If April closes with the crossover confirmed, it will represent the first official bearish momentum shift on the LMACD since the bullish reversal observed in July 2023.
Bitcoin Bulls Still Have an Opportunity to Shift the Momentum Before April Ends
Despite the bearish sentiment, the situation remains fluid. The current crossover is tentative, meaning there is still an opportunity for bulls to reverse the signal. A significant upward movement this month could cause the blue LMACD line to diverge higher, reinstating upward momentum and negating the bearish setup before it becomes entrenched. The analyst also acknowledged the potential for a rebound, given the current oversold conditions, as oversold technical states typically create environments conducive to dramatic reversals.
As of this writing, Bitcoin is trading at $77,260, reflecting a decrease of 2.23% and 8.93% over the last 24 hours and seven days, respectively.
