Bitcoin holds near 200-day average amid macro uncertainty
Bitcoin is trading near its 200-day moving average after dipping below $73,000, showing resilience compared to sharper declines in Ethereum and Solana. Analysts suggest the bottom may not be in, citing low volumes and mixed macro signals regarding interest rates and geopolitical conflicts.
Bitcoin has demonstrated relative stability in a volatile market, trading near its 200-day moving average after recently dipping below the $73,000 mark. While the Nasdaq experienced a capitulation event followed by a bounce, with CoreWeave rising 18% in pre-market trading, Bitcoin has undergone a slow, gradual decline rather than a sharp crash. Technical indicators suggest the asset is not yet oversold, with the Relative Strength Index (RSI) remaining above critical levels and trading volumes staying low. This contrasts with Ethereum and Solana, which have seen larger drops and oversold RSI readings that may signal a base is forming.
Blue-chip decentralized finance assets, including Uniswap and Aave, have remained strong, holding above the lows set during the October 28 Binance hack. Macro headwinds continue to weigh on risk assets, driven by mixed signals on interest rates, with a near-certain rate hike expected in December, and ongoing geopolitical uncertainty regarding the Iran war and Ukraine conflict. Analysts maintain a cautiously bullish stance, viewing Bitcoin as being in the early stages of a bull market but waiting for a capitulation event to confirm the bottom. They note that liquidity remains the primary driver for all risk assets in the current environment.