Bitcoin price prediction based on MACD: Bearish momentum gains strength

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Bearish momentum gains strength

MACD turns lower

Bitcoin’s drop to $70,000 coincided with a worsening technical picture. A trader using the pseudonym Financelot noted that the MACD indicator had started to turn lower. According to him, BTC’s movement now looks like a train rolling downhill with no brakes, meaning the decline could accelerate in the coming weeks.

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MACD helps traders assess the strength of a market move. Put simply, it shows whether buyers still have momentum or whether the market is starting to move under sellers’ control. When MACD turns lower, traders often see it as a signal that demand is weakening and price pressure may increase.

For bitcoin, this signal looks especially worrying because it appeared just as the price approached the important $70,000 level. If buyers fail to regain control quickly, the market may start to see this not as a normal correction, but as the beginning of a deeper decline.

Why bitcoin is falling

Pressure on bitcoin increased not only because of technical signals. The market also reacted to large BTC movements linked to the bankrupt exchange Mt. Gox. According to on-chain analyst ai_9684xtpa, a Mt. Gox cold wallet transferred 10,423 BTC to a new address, while another 116 BTC was moved to its own hot wallet.

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This transfer does not mean that these coins will immediately enter the market. However, investors usually watch Mt. Gox wallets closely because the exchange is still in the process of repaying creditors. If some recipients decide to sell their bitcoin after distribution, this could create additional supply and increase pressure on the price.

Another signal came from U.S. spot bitcoin ETFs. The funds recorded $483.76 million in net outflows, extending the withdrawal streak to 11 straight trading days. This shows that large investors are still in no rush to return to bitcoin, and the market lacks strong demand for a quick recovery.

What will happen to the BTC price next

Bitcoin’s next move largely depends on whether the market can hold around $70,000. If buyers quickly return, this could stop the decline and give BTC a chance to rebound. In that case, the current drop would look like a sharp but still controlled correction.

The bearish scenario will become stronger if bitcoin settles below $70,000 and MACD continues to move lower. In this case, traders may start to expect a deeper decline, as the market would receive several weak signals at once: a poor technical picture, ETF outflows and fear of possible pressure from Mt. Gox.

For now, the main risk for BTC is that weak demand has coincided with a worsening technical picture. If the price clearly moves below $70,000, the market may see this as confirmation of the bearish scenario. In that case, bitcoin’s decline could continue in the near term.

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