Bitcoin MACD Histogram Hits 2022 Low, Warning Signs Emerge

The Bitcoin (BTC) two-week chart is flashing a bearish momentum signal that hasn't appeared since the Terra (LUNA) ecosystem collapse in 2022, raising concerns about an extended downturn for the largest cryptocurrency.

According to Chartered Market Technician Tony Severino, the Moving Average Convergence Divergence indicator on BTC's two-week price chart is expanding below the zero line, indicating strengthening bearish pressure.

The last time the MACD histogram reached comparable levels was in May 2022, just before Terra's collapse sent shockwaves across crypto markets. At that time, Bitcoin fell from above $50,000 to roughly $30,000 by July - a decline of about 40%.

Severino noted that 'it is possible that something nasty is coming' and warned that the market may have already priced in the weakness the histogram is now displaying. However, he also emphasized that the comparison to 2022 carries weight given the severity of the downturn that followed back then.