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

Technical indicators show that Bitcoin’s short-term momentum is turning bearish.

The 50-day simple moving average points to major support at $64,870.

In the short term, technical indicators measuring Bitcoin {{BTC}} price action have turned bearish, with key support positioned below $65,000.

Comparing the current market price to the price 10 days ago, the cryptocurrency’s 10-day momentum has fallen below zero, indicating renewed negative momentum. Traders use the momentum indicator to confirm market trends and detect trend exhaustion.

Similarly, the moving average convergence divergence (MACD) histogram using the 26-day and 12-day exponential moving averages also turned negative. The indicator is widely used to detect trend changes along with crossovers below zero signal price loss.

Both indicators suggest that the path of least resistance is to the downside; This is consistent with analysts’ view that rising US Treasury yields pose a downside risk to Bitcoin.

The key 50-day simple moving average at $64,870 is the key support to watch out for. If the US inflation data to be announced on Friday exceeds the forecasts, the possibility of a decline towards the same level will increase.

Daily chart of BTC with indicators. (TradingView/CoinDesk)

The upper end of the channel, defined by trend lines connecting the highs and lows seen in March and April, is the resistance that the bulls will overcome. A move higher would mean the resumption of a broader uptrend.