Bitcoin Price Falls as Technical Signs Flash Red. Why Cryptos Could Have a Rough Week.
and other cryptocurrencies fell Monday, with digital assets looking vulnerable to more declines amid signs of technical market weakness and a stretch of catalysts in the coming days that could hurt cryptos.
The price of Bitcoin has declined 2% over the past 24 hours to $62,500, with the largest crypto recently trading below $62,000. Bitcoin remains well below its mid-March all-time high near $74,000, and faces headwinds amid technical market signs of trouble, including prices trading significantly under their 50-day moving average near $67,000.
“Bitcoin is developing its retreat … setting up for another test of $60,000,” said Alex Kuptsikevich, an analyst at broker FxPro. “The ability to attract new buyers, as it has since early March, will revitalize the entire crypto market. However, it is more likely that there is a high overhang of selling right now … from the perspective of 1-2 weeks, we see more of a chance of a dip into $52,000 to $55,000 than staying above $60,000.”
Bitcoin has failed to live up to short-term hopes of gains following the “halving”—a change to its programmatic monetary policy that occurred in recent weeks and represents long-term support to prices with new token supply cut in half. The waves of fresh investor interest that pushed prices higher in 2024—Bitcoin remains up almost 50% this year—could be petering out, with signs of outflows from spot Bitcoin exchange-traded funds (ETFs).
Meanwhile, this week promises a litany of catalysts that could help—or hurt—cryptos. Much of the action will stem from the stock market, where the
and other indexes are poised to react to a spate of corporate earnings in the coming days. There also will be key developments on the macroeconomic front, including a decision on interest rates from the Federal Reserve on Wednesday and the U.S. jobs report on Friday.
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Cryptos have shown themselves to be largely correlated to the equity market and wider risk sentiment, so if earnings come in weak or the outlook for interest rates and inflation looks shaky selling could spill over from stocks to Bitcoin.
Beyond Bitcoin,
—the second-largest crypto by market cap—lost 4% to below $3,200. Smaller tokens also were lower, with
sliding 5% and
retreating 3%. Memecoins fell, with
down 5% and
shedding 5%.
Write to Jack Denton at jack.denton@barrons.com
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