Markets
Bitcoin Short-Term Momentum Turns Negative: Technical Analysis
Technical indicators that evaluate Bitcoin (BTC) Short-term price movements have turned bearish, with crucial support positioned below $65,000.
The cryptocurrency’s 10-day momentum, which compares the current market price with the price 10 days ago, fell below zero, indicating renewed negative momentum. Traders use the momentum indicator to confirm market trends and spot trend exhaustion.
Similarly, the Moving Average Convergence Divergence (MACD) histogram, which uses the 26-day and 12-day exponential moving averages, has turned negative. The indicator is widely used to spot changes in trend, with sub-zero crossovers signaling price losses.
Both indicators suggest that the path of least resistance is to the downside, which is consistent with analysts’ view that rising U.S. Treasury yields present downside risk for bitcoin.
The 50-day simple moving average at $64,870 is the key support to watch. The likelihood of a decline toward that level would increase if U.S. inflation data, due later Friday, beats estimates.
The upper end of the channel, identified by the trendlines connecting the highs and lows reached in March and April, is the resistance that bulls must beat. A rise would mean the resumption of the broader uptrend.