Bitcoin Falls Below 20-Day Moving Average, Possible Short-Term Bear Market Looms, Analysts Claim


Cryptocurrencies saw a sharp decline on Thursday, with Bitcoin (BTC) dropping to a 10-day low of $28,300. After the rally the cryptocurrency had seen since the start of the year, it appears to be losing ground, as it closed below the 20-day Moving Average (DMA).

According to experts, a 20-DMA is a short-term view that could trigger more selling pressure. Laurent Kssis, a crypto trading advisor at CEC Capital, stated: “The 20-day moving average has less lag and tracks Bitcoin more closely. In our opinion, it is demonstrating a market correction which could be intensified.”

The fall comes on the heels of a big sell order on crypto-exchange Binance, as well as the UK’s higher than expected inflation rate of over 10% for March. Sheraz Ahmed, managing partner at STORM, spoke to CoinDesk about this, saying: “This pullback doesn’t look good, but when you look at Bitcoin’s yearly chart, it’s clear that we just saw an elongated period of rapid growth while the industry is still recuperating from the previous crypto-related disasters. We could be witnessing the start of an overdue yet overall healthy correction, which should motivate additional accumulation.”

Elsewhere, the sentiment in traditional markets was dented by a drop in Tesla (TSLA) shares, which fell 8.5% on the day after the company’s earnings report was released Wednesday. This saw the Dow Jones, S&P 500, and Nasdaq futures all decline on the day. Craig Erlam, analyst at foreign exchange trading firm Oanda, said in a morning note that despite Bitcoin’s surge since the start of the year, the revival could be running on fumes.

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