Bitcoin Champion of Unstable Prices of Volatile Prices As It Rises

Bitcoin Champion of Unstable Prices of Volatile Prices As It Rises, But Indicators Says That It Will Drop Soon.

18 September 2023

Bitcoin champion of volatile prices on Friday, as Bitcoin and other cryptocurrencies surged while risk-sensitive assets in general gained. On the other hand, traders were braced for a drop when a major technical signal — the so-called death cross — flashed red this week.

Bitcoin’s price has gained 1.5% in the last 24 hours to $26,650, with the largest digital currency still trading near the $26,000 mark that has reigned for much of the previous month. Bitcoin saw a short selloff to mid-June lows under $25,000 earlier this week but has since recovered in a move that deviated from months of record low volatility.

Rachel Lin, CEO of trading platform SynFutures, remarked on the issue, stating that following an initial alarm at the start of the week, the crypto market soon rebounded and stabilised around the same levels it has been at over the last month. Bitcoin is presently changing the $26,000 level from resistance to support; it might be a good indicator if it remains above $26,000 by the end of the week.

Digital assets have recently climbed with the stock market, with the Dow Jones Industrial Average having its best day since early August on Thursday and the S&P 500 on course for a three-day winning streak. Despite these advancements, the technological environment for Bitcoin is bleak.

The fact that Bitcoin prices had formed a death cross, a carefully observed technical indication that frequently indicates a prevailing slump in prices, or at the very least a shift in mood toward bearishness, was in the spotlight. It is the point at which the 50-day moving average of prices falls below the 200-day moving average.

According to Dow Jones Market Data, the Bitcoin champion declined 2.3% on average the week after a death cross. The death cross formed this week for the first time since January 2022, when prices began the month at $47,000 before plummeting more than 65% to a bottom in November.

Beyond the technicals, analysts were pessimistic, with the macroeconomic background — interest rates likely to remain higher for longer than previously believed to manage inflation, weighing on demand for riskier assets — looking far from encouraging.

Conor Ryder, head of research and data at crypto infrastructure firm Ethena Labs, stated there is too much uncertainty in the market right now to predict a prolonged increase in Bitcoin and other digital assets. Too many variables are pulling the market down. The macro-environment, in particular, remains unfavourable for a rally in long-term assets, particularly crypto.

Beyond Bitcoin, Ether, the second-largest cryptocurrency, gained 1% to $1,630. Smaller tokens also performed well, with Cardano and Polygon gaining 1%. Dogecoin increased by 1%, while Shiba Inu increased by 2%.

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