(Bloomberg) -- One of Bitcoin's most profitable trading signals is indicating that the cryptocurrency's terrible start to 2018 is poised to get worse.
An investment strategy based on the Moving Average Convergence Divergence indicator has returned 1,152 percent when applied to Bitcoin over the past 12 months, the biggest gain among 22 indicators tracked by Bloomberg.
The MACD based on daily prices turned bearish in December -- just days after Bitcoin peaked -- and continues to suggest the virtual currency will move lower. The same is true when using weekly prices. As the chart shows, a bearish signal is triggered when the white MACD line moves below the red signal line.
Bitcoin sank 9.9 percent to $6,395.64 at 10:56 a.m. in Hong Kong, extending its slide from the intraday peak on Dec. 18 to 67 percent, according to composite pricing on Bloomberg.
For more on cryptocurrencies:
Bitcoin Slumps Below $7,000 as Cryptos Hit by Risk-Asset Rout
Cryptocurrency Rules From Congress Sought by U.S. Market Cops
Bitcoin Selloff Among Biggest in Digital Coin's History: Chart
Why Bitcoin Goes Down as Well as Up (Plus What It Is): QuickTake
Power-Hungry Crypto Mines Clean Up as Cost of Electricity Grows
--With assistance from Li Zhao
To contact the reporter on this story: Michael Patterson in Hong Kong at mpatterson10@bloomberg.net.
To contact the editors responsible for this story: Brian Bremner at bbremner@bloomberg.net, Sree Vidya Bhaktavatsalam
©2018 Bloomberg L.P.
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