Bitcoin
Bitcoin’s Short-Term Momentum Turns Negative: Technical Analysis
Technical indicators that measure Bitcoin (BTC) Short-term price movement has turned bearish, with crucial support positioned below $65,000.
The cryptocurrency’s 10-day momentum, which compares the current market price to the price 10 days ago, has fallen below zero, indicating renewed negative momentum. Traders use the momentum indicator to confirm market trends and detect trend exhaustion.
Similarly, the Moving Average Convergence Divergence (MACD) histogram, which employs 26-day and 12-day exponential moving averages, has turned negative. The indicator is widely used to detect trend changes, with crossovers below zero signaling price losses.
Both indicators suggest that the path of least resistance is downward, which is consistent with analysts’ view that rising US Treasury yields pose a downside risk to bitcoin.
The 50-day simple moving average at $64,870 is the main support to watch. The likelihood of a fall in the same direction would increase if US inflation data due on Friday exceeds estimates.
The upper end of the channel, identified by the trend lines connecting the highs and lows reached in March and April, is the resistance for the bulls to overcome. A move higher would mean the resumption of the broader uptrend.