Bloomberg: Bitcoin at risk of falling below its 50-day moving average

Bloomberg reported that Bitcoin has continued its decline from its recent record highs and is testing important technical barriers. Bitcoin is at risk of falling below its 50-day moving average. If it continues to fall below this average, it may mean that the future trend is worrying.

Michael O'Rourke, chief market strategist at JonesTrading, said that if Bitcoin falls below and remains below the 50-day moving average, it will confirm that the rally over the past four months was a speculative boom. However, it may be challenging for Bitcoin to gain further upward momentum. Grayscale Bitcoin Trust has shown signs of slowing inflows.

Optimism about bitcoin gaining mainstream institutional approval played a major role in driving the cryptocurrency to record highs this year, but last week’s sharp sell-off raised questions about its ability to reach new highs.