Bear -Market Alarm: Cryptocurrency prices fall when MacD crosses the Bärische Line
The cryptocurrency market has been wild in the past few weeks, the prices fall on new lows and investors have been in an envelope. However, one of the indicators of market emotions suggests that the bear market is far away – the MACD (sliding average convergence divergence) below the zero line.
For strangers, MACD is a technical analysis tool used by dealers to identify the reversal of the trend and to predict potential price movements on the financial markets. The indicator consists of two movable average values: a simple sliding average (SMA) of 12 periods and an email of 26 period. When EMA crosses SMA, it forms a signal “bear crossing”, which indicates that the market will probably remain lower.
In the past few days, the MacD has crossed the zero line and triggered several shopping signs for cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and others. This step suggests that investors welcome prices and return at short notice.
However, not all indicators support this bullish view. The relative strength index (RSI) has reached extreme levels, which indicates about purchased conditions and warning signs for upcoming exchange rates. In addition, the stochastic oscillator shows a 70%reading that falls into the normal area, but indicates that prices are withdrawn.
In the meantime, emotions between dealers are definitely a bear. The VIX (volatility index), which is often referred to as the “fear meter”, has the top value, which indicates that investors have increased fear and concern about market volatility. This fear -based approach indicates that many dealers are reluctant to take the risk of making profits instead of relying on technical indicators such as the MACD.
Why is the bear trend so attractive?
There are many reasons why the bear market dominates the narrative:
- Global economic uncertainty : The ongoing epidemic and the resulting economic downturn have created uncertainty among investors, and many are looking for safer assets with less risk.
- Liquidity problems
: cryptocurrency markets are notoriously fluid, which makes it difficult for dealers to enter or enter positions in order to use the price movement.
- Regulatory uncertainty : Governments and supervisory authorities around the world examine the space of cryptocurrency, which can lead to increased volatility and market volatility.
What can you do?
Although the bear trend is built at short notice, there are some possible reasons why prices can stabilize or even jump back:
- Market fatigue : If price movements become more frequent and more intense, some investors can lose their patience and fled to safer means.
2.
- Regulatory clarity
: If governments and supervisory authorities offer clearer instructions on cryptocurrencies, investors can become more optimistic in space.
Diploma
When we start in the unknown of the bear market, it is important that retailers remain vigilant and adaptable. MacD is an effective instrument for identifying the trend reversal, but its importance must be reconciled with other forms of analysis and risk management techniques. By understanding the underlying factors on the basis of market motions, investors can make well -founded decisions about trade and success.
