Bitcoin (BTC) and Altcoins Fischer Transform Indicator Flips Bearish

Technical expert Tony Severino has warned that the Bitcoin and altcoins Fischer Transform indicator has flipped bearish for the first time since 2021.

Technical expert Tony Severino has warned that the Bitcoin and altcoins Fischer Transform indicator has flipped bearish for the first time since 2021. The analyst also revealed the implications of this development and how exactly it could impact these crypto assets.

Technical Expert Reveals Implications Of Bitcoin, Altcoins Fischer Transform Indicator Flipping Bearish

In an X post, Severino revealed that the total crypto market cap 12-week Fisher Transform has flipped bearish for the first time since December 2021. Before then, the indicator had flipped bearish in January 2018. In 2021 and 2018, the total crypto market cap dropped 66% and 82%, respectively. This provides a bearish outlook for Bitcoin and altcoins, suggesting they could suffer a massive crash soon enough.

After the FTX collapse, the technical expert noted that the indicator had been showing some promise of a potential bottom in February 2023. However, it seems that the bottom never came as the indicator has now flipped bearish. This time, the implication is that the crypto market could fall by 82% from the highs, which would send Bitcoin to lows of around $22,000.

The 12-week Fischer Transform on the total crypto market cap has now flipped bearish for the first time since December 2021 (previous in January 2018).

After FTX, it looked like we might get a bottom, but no. This is a 66% drop from the highs (2021) and a potential 82% drop (2018). pic.twitter.com/Q9i9u9y88Z

— Tony "The Kraken" Severino (@ajseverino) September 6, 2023

In another X post, the technical expert revealed that Bitcoin’s 12-week Fischer Transform has also flipped bearish. Severino noted that this indicator converts prices into a Gaussian normal distribution to smooth out price data and filter out noise. In the process, it helps generate clear signals that help pinpoint major market turning points.

The 12-week Fischer Transform for Bitcoin has also flipped bearish.

This indicator converts prices into a Gaussian normal distribution to smooth out price data and filter out noise. It helps generate clear signals for major market turning points.

On this timeframe, it has never missed a top or bottom call.

— Tony "The Kraken" Severino (@ajseverino) September 7, 2023

Severino asserted that this indicator on the 12-week timeframe has never missed a top or bottom call, indicating that Bitcoin and altcoins may have indeed topped out. The expert has been warning for a while now that the Bitcoin top might be in and that a massive crash could be on the horizon for the flagship crypto.

He recently alluded to the Elliott Wave Theory and market cycles to explain why he is no longer bullish on Bitcoin and altcoins. Severino also highlighted other indicators, such as the Parabolic SAR (Stop and Reverse) and Average Directional Index (ADX), to show that BTC’s bullish momentum is fading. The expert also warned that a sell signal could send BTC into a Supertrend DownTrend, with the flagship crypto dropping to as low as $22,000.

Crypto Analyst Provides Different Perspective On Bitcoin Price Action

While Severino is bearish on Bitcoin and altcoins, crypto analyst Kevin Capital provided a different perspective on the matter.

Taking to X, the analyst noted that Bitcoin is in a correctional phase, but the time for this phase to end is quickly approaching. According to Kevin Capital, the question is not whether this phase will end with the announcement of Donald Trump’s reciprocal tariffs as the main focus of attention in the macroeconomic sphere. Instead, it is about how strong Bitcoin’s bounce will be and whether the flagship crypto will make new highs or record a lackluster lower high followed by a bear market.

The analyst stated that the optimists are already pricing in an extremely deep correction, adding that if the pivot in the Total crypto market cap 12-week Fischer Transform occurs at the same time as the announcement of the reciprocal tariffs, then this will serve as a perfect pivot for an 82% decline from the highs.

Kevin Capital added that Bitcoin’s price action when that time comes will also be trackeable using other methods, such as money flow, macro fundamentals, and overall spot volume. The major focus is on the macro fundamentals as market participants look forward to Donald Trump’s much-anticipated reciprocal tariffs, which will be announced tomorrow.