Bitcoin Continues to Fall, Hits Two-Month Low Amid ‘Little Reason for Optimism’
Bitcoin
and other cryptocurrencies continued to fall on Friday, slipping further from key levels as analysts saw a gloomy technical backdrop for digital assets with few immediate catalysts for a rally.
The price of Bitcoin has fallen 4% in the past 24 hours to $26,400, the lowest level in nearly two months. The biggest digital asset continues to hover well below the technically and psychologically important zone around $30,000, which prices topped in April for the first time since June 2022, as the crypto crash accelerated into a brutal bear market. Bitcoin has failed to consolidate these gains and has accelerated lower in recent days despite catalysts that could be read as positive.
“Bitcoin is trading at its lowest level since March 17, losing over 15% from its peak last month,” said Alex Kuptsikevich, an analyst at broker FxPro. “Bitcoin’s return to $25,000 looks like a real prospect in the coming days.”
While macroeconomic data has provided catalysts in recent days, Bitcoin has failed to capitalize on trends that indicate a better backdrop for the most risk-sensitive assets, such as crypto and high-growth stocks such as those in the technology sector.
The stock market is technology-heavy
Nasdaq Composite
-which tends to act more like Bitcoin than does
Dow Jones Industrial Average
and
S&P 500
– have marched higher amid signs of cooling inflation. Disinflation should allow the Federal Reserve — whose campaign of dramatic rate hikes over the past year has wreaked havoc on both Bitcoin and tech stocks — to pause and support high-growth assets.
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But that has done little to bolster Bitcoin, adding to worrisome technical signs of crypto weakness. Sentiment across digital assets has also taken a hit, with the Crypto Fear and Greed Index falling to 49 on Friday, indicating neutral sentiment, but sitting at its lowest levels since early March, when a selloff pushed Bitcoin near $20,000 .
“The local technical pattern gives little cause for optimism,” Kuptsikevich added, citing Bitcoin’s plunge through its 50-day moving average earlier this week and stagnation below another support line at $27,500. “In other words, we’re seeing more than just a correction of this latest growth spurt,” the analyst said.
Beyond Bitcoin,
Ether
— the second largest crypto — fell 3% to below $1,775. Smaller cryptos or altcoins were more mixed, too
Cardano
up 2% and
Polygon
down 1%. Memecoins were also mixed in, too
Dogecoin
hovering around flat and
Shiba Inu
reduction 2%.
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Write to Jack Denton at [email protected]
