Bitcoin's Price Falls Below 200-Day Moving Average
Bitcoin's price fell below its 200-day simple moving average (SMA) on Thursday, dropping to around $57,300. This marks a significant decline from the last time it traded below this key long-term trend indicator in October, when it stood at $28,000. Since then, Bitcoin had risen to record highs above $70,000 by March, partly driven by speculation of a U.S. spot Bitcoin ETF.
The decline accelerated as the cryptocurrency slipped under the 200-day SMA level of $58,492 during European trading hours. Markets trading below the 200-day moving average are generally seen as in a downtrend. The downward movement is heightened by the Federal Reserve's decision not to cut interest rates until they have more data on inflation, according to minutes from their latest meeting.
Valentin Fournier, a digital assets analyst at advisory firm brn, stated that ongoing selling pressure and hawkish comments from Federal Reserve Chairman Jerome Powell might push Bitcoin's price down to $52,000. Similarly, FxPro senior market analyst Alex Kuptsikevich mentioned a potential slide to $51,500.
Bitcoin's next support level, according to Fournier, is around $57,590. A breach of this trendline might lead to further declines as traders use such breakdowns to inform their trading strategies.
Future movements may also be influenced by the upcoming U.S. non-farm payrolls report, which the Labor Department is set to release. This report could provide further insights into economic conditions affecting both traditional and cryptocurrency markets.