Bitcoin's Bearish Momentum Signal Echoes 2022's Terra Collapse

Bitcoin's two-week chart is flashing a bearish momentum signal that hasn't appeared since the Terra (LUNA) ecosystem collapse in 2022, raising concerns about a potential extended downturn for the largest cryptocurrency. The Moving Average Convergence Divergence indicator on BTC's two-week price chart has hit its lowest level in years.

Chartered Market Technician Tony Severino flagged this deterioration on X and pointed to the MACD histogram, which is expanding below the zero line, a pattern that signals strengthening bearish pressure. The last time the histogram reached comparable levels was just before Terra's collapse sent shockwaves across crypto markets.

The comparison to 2022 carries weight given the severity of the downturn that followed back then. Bitcoin fell from above $50,000 to roughly $30,000 by July in 2022, a decline of about 40%. With BTC trading at around $67,179 at the time of writing, showing little movement over the prior 24 hours, some are warning that 'something nasty is coming'.