According to CoinDesk, the Guppy Multiple Moving Average (GMMA) indicator, which signaled a bullish trend in mid-October and led to a 70% price surge for bitcoin (BTC), is now flashing a bearish signal for trend-following traders. The GMMA, developed by Australian trader Daryl Guppy, groups several exponential moving averages (EMA) into short and long-term categories to help traders identify trend changes and trade a trending market. A bearish-to-bullish trend change occurs when the short-term band (green lines) crosses above the long-term band (red lines), while a bearish shift in momentum occurs when the green band crosses below the red band.
At press time, the GMMA appeared set to produce a bearish crossover, with the green band nearly moving below the red band, signaling growing bearish momentum. Bitcoin was trading at $39,200 on major exchanges, well below the red band. The green band crossed above the red band in mid-October when bitcoin was trading near $28,000, leading to a consistent rally in the following weeks and reaching a high of nearly $49,000 on January 11. Previous bull crosses in mid-January and mid-March 2023 led to multi-week bullish trends, while bear crosses in December 2021 and April 2020 brought prolonged market downturns.
