Bitcoin in bear mode following Fitch downgrade of US credit rating
Comment
- Bitcoin briefly rose above $30,000 after the Fitch downgrade of U.S. debt.
- Crypto enthusiasts saw this as a sign of reduced confidence in the traditional financial system and growing interest in decentralized alternatives.
- However, Bitcoin's price has since declined.
- The drop in digital assets aligns with a slide in the stock market.
- The Dow Jones Industrial Average and S&P 500 both fell on Wednesday.
- Both indices were anticipated to decline further on Thursday due to higher Treasury yields.
Daily Technical Analysis
Source: www.tradingview.com
- There is substantial overhead resistance between 30,000-31,000 (red shaded area), with 30,000 being regarded as an important psychological level.
- The green 5-day EMA is below the orange 10-day EMA, putting the EMAs in bearish mode.
- The daily RSI is under 50 (blue rectangle), which suggests a current underlying bearish momentum.
- Bitcoin is feeling the pressure with other risk assets, following Fitch's downgrade of the US credit rating.
- Of interest, the bitcoin price has moved above its black downward sloping trendline. This suggests that the downwards momentum may be waning.
- However, the bearishness remains until a catalyst causes the EMAs to cross bullishly and for the RSI to pop above 50.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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