Bitcoin,Altcoins Face Major Crash as Key Indicator Turns Bearish
1min read Technical expert Tony Severino has issued a warning that the Bitcoin and altcoins Fischer Transform indicator has turned bearish for the first time since 2021. This development suggests a potential significant downturn for these crypto assets.
Severino revealed that the total crypto market cap 12-week Fisher Transform has flipped bearish, a situation that last occurred in December 2021. Prior to this, the indicator had also flipped bearish in January 2018. In both instances, the total crypto market cap experienced substantial drops, with a 66% decline in 2021 and an 82% drop in 2018. This historical data provides a bearish outlook for Bitcoin and altcoins, indicating that they could be on the verge of a major crash.
Severino further explained that Bitcoin’s 12-week Fischer Transform has also turned bearish. This indicator is designed to convert prices into a Gaussian normal distribution, smoothing out price data and filtering out noise. This process helps generate clear signals that can pinpoint major market turning points. Severino emphasized that this indicator has never missed a top or bottom call on the 12-week timeframe, suggesting that Bitcoin and altcoins may have reached their peak.
Ask Aime: What could be the next move for Bitcoin and altcoins?
The expert has been cautioning for some time that the Bitcoin top might be in and that a significant crash could be imminent for the flagship crypto. Severino referenced the Elliott Wave Theory and market cycles to support his bearish stance on Bitcoin and altcoins. He also highlighted other indicators, such as the Parabolic SAR (Stop and Reverse) and Average Directional Index (ADX), to demonstrate that BTC’s bullish momentum is waning. The expert warned that a sell signal could trigger a Supertrend DownTrend, potentially causing BTC to drop to as low as $22,000.
Crypto analyst Kevin Capital offered a contrasting view on Bitcoin’s price action. While acknowledging that BTC is currently in a correctional phase, he asserted that this phase will soon conclude. Kevin Capital emphasized that the focus should be on the strength of Bitcoin’s bounce and whether it will achieve new highs or record a lower high followed by a bear market. He suggested that Bitcoin’s price action can be tracked using various methods, including money flow, macro fundamentals, and overall spot volume.
Market participants are eagerly awaiting Donald Trump’s anticipated reciprocal tariffs, which are expected to be announced soon. These tariffs could have a significant impact on the overall market sentiment and Bitcoin’s price action.
