U.S. Stock Market Poses Danger to Bitcoin: Critical Support Lost! - Coin Newsletter

As the price of Bitcoin (BTC) falls below the critical level, it is stated that the decline may continue due to selling pressure from short-term investors.

Bitcoin (BTC) struggled to hold above the $80,000 level on Thursday and ended the day down 3%. BTC, the largest in the cryptocurrency market, is down nearly 30% from its all-time high in January and has lost a total of 13% in the first quarter of the year. Experts interpret BTC price falling below the 200-day moving average, which is considered technically critical, as a sign that the market remains at risk.

According to data shared by Glassnode, short-term investors who have held Bitcoin for less than 155 days have sold more than 100,000 BTC since February. These sales, which are worth about $8 billion at today's prices, show that short-term investors are panic selling in order to prevent bigger losses or realize their current gains.

Distress signal on the S&P 500

Bitcoin's technical downturn isn't unique to the cryptocurrency market. The S&P 500 index, the most important indicator of U.S. equity markets, has also lost its 200-day moving average. The index, which currently stands at 5,537, continues to remain below the critical threshold of 5,738, indicating historically deeper declines.

Lawyer Joe Carlasare, known as a Bitcoin supporter, used the following statements in his post on the subject:

"The S&P 500 is struggling to break above the 200-day moving average. Unless there is a strong rise in the near future, we look at history and see that lower prices await us."

Experts warn investors to be careful. In this period, when both Bitcoin and the US stock markets are losing technical strength, it is predicted that the volatility in the markets will continue.