Bitcoin and S&P 500 Face Challenges Below 200-Day Moving Average
Bitcoin has seen over 100,000 BTC sold by short-term holders since February, contributing to a 30% price drop from its peak. Similarly, the S&P 500 is over 200 points below its 200-day moving average, signaling potential further declines if it cannot recover. Observations from analysts suggest that these trends warrant caution moving forward.
Bitcoin (BTC) and the S&P 500 are currently facing difficulties as both struggle to remain above critical technical levels. Notably, short-term bitcoin holders have sold over 100,000 BTC since February, leading to a decline of approximately 30% from its all-time high. As of now, the S&P 500 index is situated over 200 points below its 200-day moving average, raising concerns of potential further downward movement if it cannot recover this level.
On Thursday, Bitcoin was observed battling to maintain its price above $80,000, having experienced a 3% decrease on the day. For the first quarter, BTC has declined 13% and now sits nearly 30% off its January all-time high. The Glassnode data indicates that short-term holders, defined as those having possessed Bitcoin for less than 155 days, are largely speculators deciding to sell during this downturn.
This selling trend has caused Bitcoin’s price to dip beneath its 200-day moving average, which is currently set at $86,300. This average serves as a significant indicator for long-term market trends, and Bitcoin is not alone in facing challenges. The S&P 500 index is currently at approximately 5,537, compared to its 200-day average of 5,738.
Joe Carlasare, a commercial litigator involved with Bitcoin, remarked that when the S&P 500 fails to recover the 200-day moving average, historical patterns indicate the likelihood of further price declines. He stated, “The S&P 500 continues to struggle to reclaim the 200 day. If we can’t get a big rally above it soon, it makes sense to expect lower prices. Look back historically at what happens when we lose the 200 day.”
James Van Straten, a Senior Analyst at CoinDesk, holds considerable expertise in monitoring Bitcoin’s interactions with the macroeconomic environment. With a background as a Research Analyst at Saidler & Co., he specializes in on-chain analytics to evaluate Bitcoin’s influence within the broader financial system. Additionally, he provides advisory services to Coinsilium, aiding in their Bitcoin treasury strategy, and maintains personal investments in Bitcoin and related entities.
In summary, both Bitcoin and the S&P 500 are experiencing significant challenges as they remain below critical technical thresholds. The selling behavior of short-term bitcoin holders is exacerbating the price decline, reflecting a broader concern for both assets. Historical trends indicate that failure to recover these levels could lead to further decreases in value. Investors may need to exercise caution as the situation develops.
Original Source: www.coindesk.com
Post Comment