Cryptocurrency

Bitcoin in bear mode following Fitch downgrade of US credit rating

Russell Shor Written by Russell Shor
  • BTCUSD
    (${instrument.percentChange}%)

Comment

  1. Bitcoin briefly rose above $30,000 after the Fitch downgrade of U.S. debt.
  2. Crypto enthusiasts saw this as a sign of reduced confidence in the traditional financial system and growing interest in decentralized alternatives.
  3. However, Bitcoin's price has since declined.
  4. The drop in digital assets aligns with a slide in the stock market.
  5. The Dow Jones Industrial Average and S&P 500 both fell on Wednesday.
  6. Both indices were anticipated to decline further on Thursday due to higher Treasury yields.

Daily Technical Analysis


Source: www.tradingview.com

  1. There is substantial overhead resistance between 30,000-31,000 (red shaded area), with 30,000 being regarded as an important psychological level.
  2. The green 5-day EMA is below the orange 10-day EMA, putting the EMAs in bearish mode.
  3. The daily RSI is under 50 (blue rectangle), which suggests a current underlying bearish momentum.
  4. Bitcoin is feeling the pressure with other risk assets, following Fitch's downgrade of the US credit rating.
  5. Of interest, the bitcoin price has moved above its black downward sloping trendline. This suggests that the downwards momentum may be waning.
  6. However, the bearishness remains until a catalyst causes the EMAs to cross bullishly and for the RSI to pop above 50.

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Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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