Bitcoin Price Struggles as 200-Day SMA Loses Momentum Before Jobs Data

Bitcoin Price- Bearish Crossover Warning: Bitcoin’s 200-Day SMA Indicates Possible Price Drop

Bitcoin Price– The 200-day simple moving average (SMA) for Bitcoin (BTC), a crucial indicator of the cryptocurrency’s long-term trend, is showing signs of weakening bullish momentum. As the U.S. jobs data approaches, which is expected to impact the Federal Reserve’s interest rate decisions, Bitcoin’s long-term outlook is coming under scrutiny.

Recent Performance and Current Trends

Since late August, Bitcoin’s 200-day SMA has been averaging a daily increase of less than $50, a stark contrast to the $200-plus fluctuations observed earlier this year. The current 200-day SMA stands at $63,840, while Bitcoin’s spot price is around $55,880. This decrease in volatility suggests that the average may have reached stall speed, signaling a potential pause or a shift towards a bearish trend.

Bearish Crossover Signals Weakening Sentiment

Short-term moving averages, including the 50-day and 100-day SMAs, have already peaked and started to decline. Notably, the 100-day SMA has crossed below the 200-day SMA, confirming a bearish crossover. This shift indicates a weakening in bullish sentiment and growing caution amidst increasing macroeconomic uncertainty.

Market Analyst Insights

Alex Kuptsikevish, a senior market analyst at The FxPro, notes that the overall risk-off mood in the financial markets is impacting Bitcoin negatively, despite the dollar’s weakness. Kuptsikevish highlights a critical technical support level for Bitcoin at just above $54,000, with a potential for the price to briefly drop below $53,000 if market volatility spikes.

Support Levels and Market Predictions

The daily chart shows major support around the $50,000 mark, defined by a trendline connecting corrective lows from May and July. Market observers, including Arthur Hayes, co-founder and former CEO of BitMEX, predict that Bitcoin may test this $50,000 support level.

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