After Bitcoin failed to maintain its position above the $100,000 psychological threshold earlier this year, its bullish momentum has steadily diminished. Over the last two months, the pullback has intensified, with Bitcoin fluctuating between $75,000 and $79,000 in April. The bullish outlook is waning, and the cryptocurrency sector is seeking technical clarity amid increasing pressure in traditional markets, particularly equities.
In light of this scenario, crypto analyst Tony Severino pointed out that the current market setup presents a significant opportunity for a major move that could counter an extended bearish trend.
Tony “The Bull” Identifies Key LMACD Inflection Point to Counter Bearish Sentiment
According to Tony “The Bull” Severino, a critical development on the charts is the impending bearish crossover on Bitcoin’s 1-month LMACD indicator. The LMACD, which measures market momentum on a logarithmic scale, currently indicates the blue line approaching a crossover beneath the orange signal line.
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This type of anticipated crossover is recognized as a crucial bearish confirmation, and its emergence has aligned with increased weakness across broader markets, including traditional indices such as the S&P 500 and Nasdaq.
While the crossover has yet to be verified by a monthly close, its presence at the start of April raises concerns. Severino stated that unless a significant rally occurs before the month concludes, the blue line will dip below the orange line, officially signifying a bearish momentum shift. Should the month end with the crossover intact, it will represent the first confirmed bearish momentum change on the LMACD since the bullish reversal in July 2023.
Bitcoin Bulls Retain an Opportunity to Shift the Outlook Before April Concludes
Despite the bearish sentiment, the final verdict is not yet written. The current crossover is provisional, meaning there remains an opportunity for bulls to negate the signal. A significant upward movement this month could enable the blue LMACD line to diverge higher, reinstating upward momentum and invalidating the bearish setup before it solidifies. The analyst also highlighted this rebound potential given the current oversold conditions, as such technical states typically create environments conducive to dramatic reversals.
As of this writing, Bitcoin is priced at $77,260, representing a loss of 2.23% in the past 24 hours and 8.93% over the last week.
