Bitcoin's Momentum Indicator Flashes Worst Reading Since Terra Collapse

Bitcoin's two-week chart has flashed a bearish momentum signal that hasn't been seen since the Terra (LUNA) ecosystem collapse in 2022, according to Chartered Market Technician Tony Severino.

The Moving Average Convergence Divergence (MACD) indicator on BTC's two-week price chart is expanding below the zero line, a pattern that signals strengthening bearish pressure.

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