Bitcoin Loses Key 200-Day Average: Is $67,000 Next?
Bitcoin price dropped below its 200-day moving average of $73,137 on Thursday, currently trading at approximately $71,000, nearly 3% below that critical level.
The 200-day moving average is one of the most closely watched indicators in cryptocurrency markets, helping investors understand whether Bitcoin's long-term price trend is strengthening or weakening. If Bitcoin fails to reclaim this level, the largest cryptocurrency could fall towards $67,000, erasing all of its gains since August.
Fed Rate Hike
The market now widely expects an interest rate hike in December from the Federal Reserve, as the latest CPI data suggested inflation is hotter than expected, leaving no room for a rate pause. Meanwhile, the 10-year Treasury yield returned to roughly 5%, and the dollar index neared a 19-month high.
Selling Pressure
US spot Bitcoin ETFs lost $299.8 million on Wednesday, extending five days of outflows, with BlackRock's IBIT accounting for most of the exit. Index provider MSCI confirmed it will remove MicroStrategy (MSTR), the Bitcoin treasury firm, from two US indexes. Spot selling then accelerated once BTC lost $72,000.
Technical Outlook
Bitcoin is on track to close below its 200-day moving average, suggesting the market is weakening and further losses are possible. If selling continues, Bitcoin could fall toward $68,000, followed by $67,000. To regain momentum, BTC first needs to recover above its 200-day average, with the next major obstacle at $75,000.
There is some hope for buyers as Bitcoin's Relative Strength Index (RSI) has fallen to 30, suggesting Bitcoin may be oversold and due for a rebound. A similar reading on June 30 marked a market bottom, though earlier in June, Bitcoin continued falling despite showing the same warning signs.
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