Bitcoin’s Short Term Momentum Flips Bearish; Support Under $65K

The cryptocurrency’s 10-day momentum, which measures the difference between its current price and the price from ten days ago, has turned negative. This signifies a reversal in the previous upward trend and may suggest that traders should be cautious or consider selling as this could indicate that the market is losing steam.

As a financial analyst, I frequently utilize various technical indicators to identify trends and potential trend reversals in the market. One such popular tool is the Moving Average Convergence Divergence (MACD) histogram. This specific indicator compares two moving averages, 26-day and 12-day exponential moving averages, to provide buy and sell signals.

As a crypto investor, I’ve been closely monitoring the market trends, and based on my analysis of the technical indicators, it appears that the market may be headed for a downturn. This aligns with the consensus among analysts that the increasing U.S. Treasury yields could negatively impact Bitcoin’s price. In simpler terms, the indicators suggest that selling might be the better option at this moment, given the potential risks from rising U.S. Treasury yields.

Keep an eye on the significant support level at $64,870, represented by the crucial 50-day simple moving average in Bitcoin’s price chart. The likelihood of a potential drop toward this mark heightens if the upcoming US inflation data, to be released later on Friday, surpasses predictions.

As an analyst, I’ve identified the resistance level for the bullish trend by drawing trendlines that connect the high points hit in March and April. Breaking above this resistance could signify a resumption of the overall upward trend.