Reversal pattern may be forming: Crypto Index Analysis
Crypto Index analysis indicates that a bearish correction may be about to take place. Failure to overcome the 47,000 level could see the index tumbling towards the 27,000 level over the medium-term.
The Crypto Index continues to trade at a critical juncture ahead of the upcoming Bitcoin halving event.
Crypto Index analysis shows that a bearish reversal pattern may be forming, following bulls recent failure to make a new monthly high.
Crypto Index medium-term price trend
The Crypto Index may be about to turn lower, after the broader cryptocurrency market failed to rally alongside Bitcoin last week.
Crypto Index technical analysis over the medium-term shows that a large head-and-shoulders pattern may be forming.
Bulls failed to breach the 47,000 level last week, and form a new higher monthly high. This could be a medium-term sell signal.
Traders that are bearish over the medium-term may wait for price to move below the neckline of the bearish pattern, around the 37,000 level, before initiating sell positions.
According to the size of the pattern, a decline below the 37,000 level could cause the crypto index to fall towards the 27,000 level.
Crypto Index short-term price trend
Crypto Index analysis highlights that the index only has a bullish short-term trading bias while the price trades above the 40,300 level.
The 30-minute time frame currently shows that bearish MACD price divergence has formed during the recent rally towards the 47,000 level.
Looking more closely at the mentioned time frame the bearish MACD price divergence extends down towards the 39,000 level.
If the price moves below the 43,000 level it is entirely likely that the bearish MACD price divergence will be reversed.
Crypto Index technical summary
Crypto Index technical analysis shows that a bearish reversal pattern may be forming. Negative MACD price divergence has also formed on the lower time frames.
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