Bitcoin (BTC) Price Risks Further Crash As S&P Monthly LMACD Turns Bearish

Crypto analyst Tony Severino has warned that the Bitcoin price risks a further crash. This came as he revealed a critical technical indicator, which has turned bearish for the flagship crypto

Crypto analyst Tony Severino has warned that the Bitcoin price (BTC) risks a further crash as a critical technical indicator has now turned bearish.

This came in a recent X post, where Severino revealed that the S&P 500 monthly LMACD has begun to cross bearish and the histogram has turned red. This development is significant as IntoTheBlock data shows that BTC and the stock market still have a strong positive price correlation.

However, BTC bulls can still turn this bearish setup in the next 20 days, as diverging would lead to a bullish setup instead. But if the bulls fail to do so, then it could lead to a massive decline for the flagship crypto, worse than it has already witnessed.

“If this setup is confirmed at the end of the month, it will either kick off a bear market or a Black Swan type event as the last two crossovers saw a 90% and 70% decline in BTC.”

It is worth mentioning that the Bitcoin price has crashed to as low as $76,000 recently, sparking concerns that the bear market might already be here. But crypto experts such as BitMEX co-founder Arthur Hayes have suggested that the bull market is still well in play.

As Hayes noted, BTC has corrected around 30% from its current all-time high (ATH), which is normal in a bull run. The BitMEX founder predicts that the flagship crypto will rebound once the US Federal Reserve begins to ease its monetary policies.

The US CPI data will be released today, which could provide some relief for the market if it shows that inflation is slowing. And if the FOMC can help turn the tides, then we might see a final wave of liquidity into the market, which would keep the Bitcoin price afloat as long as it holds a key market structure and the 3-day MACD resets.