Bitcoin’s
(BTC)
decline
gathered
pace
as
the
largest
cryptocurrency
fell
for
a
third
straight
day,
dropping
below
the
200-day
simple
moving
average
(SMA),
a
good
indicator
of
long-term
price
trends
in
both
traditional
and
crypto
markets.
The
cryptocurrency
slid
below
the
average’s
$58,492
level
during
European
hours
on
Thursday
to
less
than
$57,300,
a
price
last
seen
on
May
2,
according
to
data
on
charting
platform
TradingView.
Markets
that
consistently
trade
below
the
200-day
average
are
said
to
be
in
a
downtrend,
while
those
trading
above
the
average
are
considered
bullish.
BTC
rose
past
the
200-day
SMA
in
October,
when
the
average
value
was
$28,000.
The
breakout
–
fueled
by
expectations
for
a
spot
bitcoin
ETF
in
the
U.S.
–
paved
the
way
for
a
rally
to
record
highs
above
$70,000
by
March.
One
factor
in
bitcoin’s
price
movements
is
the
U.S.
interest
rate.
As
rates
fall,
the
attraction
of
riskier
investments
such
as
cryptocurrencies
increases.
The
minutes
of
the
Federal
Reserve
meeting
released
Wednesday
showed
policymakers
led
by
Chairman
Jerome
Powell
do
not
want
to
cut
rates
until
more
data
emerges
to
give
them
greater
confidence
that
inflation
is
moving
sustainably
to
their
2%
target.
That
may
come
as
early
as
tomorrow,
when
the
Labor
Department
releases
its
non-farm
payrolls
figure
for
June.
“We
believe
hawkish
comments
from
Jerome
Powell
and
the
ongoing
selling
pressure
are
likely
to
push
BTC
down
to
52,000,”
Valentin
Fournier,
a
digital
assets
analyst
at
advisory
firm
brn,
said
in
an
email.
“However,
we
recommend
viewing
this
as
a
buying
opportunity,
as
improving
regulations
around
cryptocurrencies
and
cooling
inflation
in
the
US
have
not
been
fully
priced
in
and
are
likely
to
bring
strong
momentum
once
investors
shift
focus
to
a
longer-term
vision.”
The
sell-off
may
run
out
of
steam
if
the
payrolls
data
shows
the
labor
market
weakened
in
June.
The
figure
is
forecast
to
show
payrolls
increased
by
195,000,
a
notable
slowdown
from
272,000
a
month
before,
according
to
FXStreet.
The
jobless
rate
is
forecast
to
have
held
steady
at
4.0%,
while
average
hourly
earnings
are
projected
to
have
slowed
to
3.9%
from
4.1%
year-on-year.
The
bull
market
progression
can
be
identified
by
a
rising
trendline
connecting
October
and
January
lows.
BTC’s
latest
break
below
the
200-day
line
has
put
the
focus
on
the
bull
market
trendline
support
at
$57,590.
A
close
(midnight
UTC)
below
that
level
could
lead
to
further
selling
and
downward
price
momentum,
as
traders
often
use
trendline
breakdowns
as
indicators
to
make
trading
decisions.
Fournier
is
not
alone
in
seeing
further
declines.
According
to
Alex
Kuptsikevich,
a
senior
market
analyst
at
FxPro,
prices
could
slide
to
as
low
as
$51,500
in
the
short
term.
“From
the
current
position,
a
12%
drop
to
$51.5k
(February
consolidation
area)
is
more
likely
than
the
same
amount
of
growth
to
$65.8k
(50-day
MA),”
Kuptsikevich
said
in
an
email.
UPDATE
(July
4,
9:45
UTC):
Adds
interest
rate,
jobs
report
starting
in
fourth
paragraph,
analyst
quote
in
fourth,
possible
decline
in
last
two
paragraphs.
