- Bitcoin rebounded from lows near $62,500 in Asian morning hours on Friday, amidst a global asset sell-off entering its third day.Despite the rebound, BTC remained under pressure, trading near its 50-day moving average, which is a key technical support level for traders.
During the American trading session on Thursday, Bitcoin dropped down to about $62,500, then regained losses and was trading around $64,000 at 6:30 UTC. This price point is close to its 50-day moving average, which acts as a strategic support level for certain traders.
In simpler terms, if the price continues to decrease, the areas around $63,000 and $61,000 are crucial as they are close to where the 50 and 200-day moving averages converge, according to Alex Kuptsikevich, a senior market analyst at FxPro. If this support fails, it could potentially lead us down to $55,000, which is quite concerning.
“Bitcoin often experiences significant losses in August, with it ending the month positively just five times out of the last 13 years, compared to eight times when it closes down. On average, Bitcoin has decreased by 15.4% during these negative months, but when it rises, the average increase is around 26%. This was mentioned as a point.”
While the collective Ether ETFs experienced a net inflow of $26.75 million, many of them recorded no change in their holdings.
On Thursday, the tech-focused Nasdaq 100 experienced a 2.6% decline, while the S&P 500 Index dropped by 1.4%. This represents a near-complete reversal of Wednesday’s 1.6% increase, primarily due to apprehensions about the U.S. economy and potential profits for technology companies.
Elsewhere, Japan’s Topix index dropped 6% on Friday to mark its biggest fall since 2016.
In a communication with CoinDesk, Presto Research emphasized that Microstrategy (MSTR) excelled in the second quarter of 2024, largely due to its strategic 3.7% increase in Bitcoin per share through “smart borrowing,” a proposed $2 billion equity sale for purchasing Bitcoins, and the intention to implement fair-value accounting for Bitcoins by the first quarter of 2025. This move is expected to boost not only Microstrategy but also the overall Bitcoin market.
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2024-08-02 10:49