- 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
- 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.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.