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Key Technical Indicators Signal Bearish Trend for Bitcoin Below $65,000

Bitcoin (BTC) continues to navigate through turbulent waters, exhibiting resilience yet remaining below its all-time high. Currently trading around $65,000, Bitcoin’s price movement is influenced by a mix of technical indicators and macroeconomic factors.

Technical Analysis Highlights

Bitcoin’s 50-day simple moving average, a crucial support level, is positioned at $64,870. A drop below this level could signal further declines. Additionally, the 10-day momentum indicator, which compares the current price to the price from 10 days ago, has turned negative, indicating renewed downward pressure. Traders use this momentum indicator to confirm ongoing trends and spot potential reversals.

The Moving Average Convergence Divergence (MACD) histogram has also turned negative, utilizing the 26-day and 12-day exponential moving averages to spot market direction changes. A crossover below zero in the MACD histogram typically signals a bearish trend.

Macroeconomic Influences

Rising U.S. Treasury yields are significantly impacting Bitcoin and other risk assets. The benchmark 10-year Treasury yield has risen by 24 basis points to 4.55% in the past two weeks, driven by persistent U.S. debt concerns and increased bond supply. Analysts suggest that a rise above 4.7% could inject volatility into stock markets, potentially affecting Bitcoin.

Furthermore, the two-year Treasury yield is nearing 5%, prompting investors to consider safer government bonds over cryptocurrencies. Peter Oppenheimer of Goldman Sachs noted that increasing yields could weigh heavily on all asset classes.

Key Economic Data to Watch

Traders are also focusing on the upcoming personal-consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure. Scheduled for release on Friday, this data will provide insights into the direction of interest rates. A higher-than-expected increase in the core PCE figure could diminish the case for interest-rate cuts, potentially leading to higher bond yields and additional pressure on Bitcoin.

Conclusion

While Bitcoin remains strong, it faces challenges from both technical indicators and macroeconomic factors suggesting a bearish trend. Key support at $64,870 and upcoming PCE data will be critical for traders and investors to watch for further direction

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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