Bitcoin returns to 200-week trend line as analyst sees risk of $57.7K next
Bitcoin fell to $67,500 on Friday, slipping below its 200-week simple moving average at $67,993 for the first time in nearly three months.
The 200-week simple moving average has long served as a critical reference point for Bitcoin’s cycle lows, acting as support or resistance during bear markets.
Bitcoin last touched this level on Aug. 19, and decisive moves back above it on the weekly chart have historically preceded sharper rallies.
The cryptocurrency’s first interaction with the trend line in 11 weeks comes as the broader market faces headwinds.
Analyst warns of further downside
Keith Alan, co-founder of the crypto trading platform Material Indicators, flagged the 200-week SMA as having confluence with a resistance/support flip level on Bitcoin’s relative strength index (RSI).
Losing 41.5 on Weekly RSI opens the door to test the cycle low at $57.7k.
The weekly RSI has returned to 41.5, a level it established as support in late July after spending several weeks attempting a breakout.
Equity markets react to Nvidia news
Bitcoin’s price decline accelerated on Friday as Asian markets reacted to the resignation and ongoing controversy around Nvidia CEO Jensen Huang.
Hong Kong’s Hang Seng finished the day down 1.55%, while South Korea’s KOSPI Composite Index ended 0.98% lower.
US stock-market futures fell slightly, with the Nasdaq-100 falling 0.2% as analysis eyed a redistribution of capital into Nvidia’s competitors, preserving the AI trade.
What you’re seeing in markets now is a bit of a rotation into other advanced chip design companies, on the assumption that this will enable other companies effectively to catch up.
Nvidia stock was 0.7% higher pre-market, meanwhile, amid reports of growing support for Huang’s return.
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