Crypto analyst Caleb Franzen highlights key Bitcoin bearish signals, including negative trading indicators and dropping momentum.
Bitcoin hasn’t been doing well lately and hasn’t met the high hopes of many who expected it to rise. Over the past few weeks, Bitcoin’s value has dropped quite a bit, going down 8.2% in the last seven days and 5.4% in the last 20 days. This has caused many short-term investors to lose money.
Crypto expert Caleb Franzen shared his thoughts on this situation on X (formerly known as Twitter). Franzen believes that Bitcoin’s recent struggles have put it at an important point that could decide whether a bull market will continue.
Bitcoin Bearish Signals: Franzen shifts stance
Caleb Franzen said, “This is the moment for Bitcoin,” as he noticed that Bitcoin’s usual upward trend seems to be weakening. Franzen, usually optimistic about Bitcoin’s future, has often predicted its growth.
But now, he’s rethinking his positive outlook due to recent market changes. He pointed out several trading signals that have turned negative, including the Williams %R, a tool used to measure momentum. This indicator hasn’t shown any positive signs for Bitcoin in the last 60 days, which has led Franzen to adjust his expectations.
According to Franzen, there are no signs of overbought condition of Bitcoin, most of the key moving average such as 21, 55, and 200 EMAs are bearish and investors seems less inclined towards risk taking. He further emphasized the need to analyze these signals with no prejudice, going on to state that Bitcoin price is currently low.
However, Franzen has not lost his optimism and continues to believe in the future of Bitcoin. Still, he concedes that he made a mistake before predicting that a bull market would take Bitcoin above $90,000 in the future. He also considered how excessive optimism to Bitcoin has resulted in critics in so many occasions over the years.
What’s happening?
Franzen noted that if Bitcoin closes below $54,000, it would make another lower low after a series of lower highs, suggesting that the price could keep dropping over the weekend. This matches Arthur Hayes’ recent prediction that Bitcoin might fall below $50,000 soon. Hayes is the co-founder of BitMEX, a crypto exchange.
At the time of writing, Bitcoin is trading at $54,280, just above the critical support level of $54,000. If it falls below this level, it could signal a deeper downward trend.
