Bitcoin and the broader crypto market have been on a downward development this week and now for the fifth consecutive day in a row. The BTC value is buying and selling 3% down within the final 24 hours and is at the moment buying and selling at $22,785 with a market cap of $435 billion.
The focus has now moved to its 200-week transferring common (WMA) as Bitcoin is buying and selling shut to $23,000. In a notice to traders on Thursday, Craig Erlam, senior market analyst at Oanda, writes:
“The rally that brought it back to $25,000 has lost considerable momentum and that could begin to weigh more heavily on the price” of Bitcoin. “A move below $22,500 may suggest the rally has run its course for now.”
On the opposite hand, crypto market analyst Lark Davis additionally factors out that Bitcoin has misplaced “RSI uptrend, bearish MACD cross, losing 50 day EMA right now,” within the final 24 hours.
#bitcoin misplaced RSI uptrend, bearish MACD cross, shedding 50 day EMA proper now… pic.twitter.com/fdsfB2ykPQ
— Lark Davis (@TheCryptoLark) August 18, 2022
Bitcoin-Equity Correlation to Continue
Bitcoin and the broader crypto markets have been intently following the actions on Wall Street this yr. Also, the present macro setup seems to be fairly unsure with fears of the upcoming recession nonetheless staying excessive.
The Fed is extra doubtless to proceed with rate of interest hikes so as to convey the hovering inflation below management. As a consequence, the fairness market will proceed to face the warmth of the quantitative tightening measures. Jamie Douglas Coutts, senior market construction analyst at Bloomberg Intelligence, wrote:
“In the short term, correlation risks are heightened as equities, especially technology names, are delicately poised at key resistance levels”.
Another warning signal for Bitcoin traders is that the buildup by long-term traders has slowed down so much. Genesis’s Ainsley To, Marc Chan and Noelle Acheson wrote: “After a steady climb in the first half of 2022, the amount of Bitcoin that has not moved in over a year has leveled off, signaling a pause in the accumulation behavior of longer-term investors”.
Top cryptocurrencies like Bitcoin and Ethereum (ETH) are nonetheless buying and selling at a 50% low cost year-to-date. However, the aid rallies have seen anyplace between 50-100% jumps from their June bottoms.
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