Bitcoin Chart Flashes Bearish GMMA Signal
The Guppy Multiple Moving Average indicator shows bitcoin's price dropping below both moving-average bundles on its daily chart.
Updated on Nov. 3, 2026 in Investing
A bearish signal appeared on bitcoin's daily chart as the Guppy Multiple Moving Average indicator showed the price falling below both its short-term and long-term moving-average bundles. The short-term bundle has slipped below the long-term bundle, a pattern traders read as selling pressure.
Why it matters
The crossover indicates traders are now selling, and it arrives alongside sharp ETF outflows and signs of weakening US demand. Demand for downside protection in options has also increased.
Bitcoin traded at $76,412.93 as the GMMA short-term bundle slipped below the long-term bundle. A bearish confirmation remains pending because the long-term bundle has not yet turned lower.
The players
Daryl Guppy
Daryl Guppy is a trader who developed the Guppy Multiple Moving Average, a trend indicator widely used in technical analysis.
The details
The Guppy Multiple Moving Average, built by trader Daryl Guppy, plots two bundles of moving averages using short and long periods. Bitcoin's daily price has dropped below both bundles, and the long-term red lines are squeezing together and beginning to slope lower.
Timeline
Late May: a similar GMMA setup was followed by a crash to below $60,000.
Late January: a GMMA crossover preceded a drop from roughly $90,000 to around $62,000.
August and September 2025: bearish GMMA signals failed and prices quickly turned higher.
Next few days: expected to show whether bulls or bears win.
Market Dynamics
This bearish crossover repeats the pattern seen before bitcoin's June crash and its January drop from about $90,000. Earlier GMMA bearish signals in August and September 2025 failed, so the pattern has not reliably predicted direction.
Investors holding bitcoin face a possible further decline if the bearish GMMA signal confirms, as weakening ETF demand and rising options hedging suggest. Readers managing crypto exposure may want to review their position sizing before the next few days show the direction.
The takeaway
Technical signals like the GMMA have given mixed results for bitcoin, so investors should weigh them alongside fund flows and their own risk tolerance rather than acting on a single indicator.
Further reading
Explore more on Investing to see how traders use indicators like the GMMA to read market trends.
Source note: This article includes information reported by CoinDesk.
