- Bitcoin and other cryptocurrencies retreated on Monday due to a risk-averse trend in broader markets, but digital assets continued to stay above key levels.
- Alex Kuptsikevich, an analyst at FxPro broker, stated, “Technically, Bitcoin is still in an uptrend, but it encountered resistance at the 200-day moving average over the weekend.”
- The risk-off move came after a significant dose of geopolitical risk was added to global markets over the weekend due to an attack by Hamas on Israel.
Bitcoin price faced harsh pressure to start the week after the war tensions over the weekend; Will it continue to decline?
Bitcoin Price Faces Pressure on Monday
Bitcoin and other cryptocurrencies retreated on Monday due to a risk-averse trend in broader markets, but digital assets continued to stay above key levels, and analysts believe the recent uptrend may continue.
Bitcoin’s price fell by over 1% in the past 24 hours, dropping to around $27,500, just below the $28,000 level. The largest digital asset has been trading well above the $26,000 range, which dominated for over a month, following a rally at the end of September. However, the token has struggled to consolidate its recent highs, which were around $28,500.
Alex Kuptsikevich, an analyst at FxPro broker, said, “Technically, Bitcoin is still in an uptrend, but it encountered resistance at the 200-day moving average over the weekend.” He added:
“All eyes will be on whether Bitcoin can successfully consolidate above the 200-day moving average. If successful, we may expect a rapid move to $29,000 to $29,300.”
On Monday, Bitcoin faced pressure from a broader asset class, including risky assets like stocks and cryptocurrencies, as investors were seeking safety amid geopolitical risks. The Dow Jones Industrial Average and the S&P 500 were both preparing to start with losses. This risk-off move followed a significant dose of geopolitical risk added to global markets over the weekend due to an attack by Hamas on Israel.
What Happens If the Pressure Continues?
Kuptsikevich said, “If pressure on risk assets continues, the focus for Bitcoin will be on the $27,200 to $27,000 range.” He concluded:
“Without significant support here, we could talk about a transition from a short-term uptrend to a downtrend.”
Beyond Bitcoin, Ethereum, the second-largest cryptocurrency, dropped by 2% to fall below $1,600. Smaller tokens or altcoins were also weaker, with Cardano down by 2% and Polygon losing 3%. Memecoins also saw declines, with Dogecoin falling by 4% and Shiba Inu dropping by 4%.
