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This Bearish Indicator Could Signal Start of Major Bitcoin Price Downturn

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Sun, 28/04/2024 - 10:58
This Bearish Indicator Could Signal Start of Major Bitcoin Price Downturn
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Well-known cryptocurrency trader Josh Olszewicz has spotted the Tenkan/ Kijun crossover on Bitcoin's daily chart. The bearish signal could indicate the start of a bearish trend.

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In order to calculate the Tenkan Sen, the highest high and the lowest low in price have to be divided in two over the past nine periods. This line can typically serve as a short-term support level during an uptrend, meaning that the price could potentially find some buying interest there. At the same time, it can also serve as a short-term resistance level if a certain asset is in a downtrend.

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The Kijun Sen (the base line) is calculated by adding the highest high and the lowest over over the past 27 periods and dividing this sum in two. This base line can act as a medium-term support level.

The relationship between the two aforementioned lines could provide key signals for traders about the current state of the market. The Tenkan Sen crossing below the Kijun Sen is usually treated as a bearish indicator since it indicates that the market is succumbing to bearish pressure.

However, this signal might not be the coup de grace for the bullish trend since the crossover took place below the Ichimoku cloud.

At press time, Bitcoin is currently trading at $63,645, according to data provided by CoinGecko. As reported by U.Today, the largest cryptocurrency is currently underperforming against Ethereum, which has managed to surge roughly 6% over the past 24 hours alone.

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