The 200-day simple moving average (SMA) of bitcoin's (BTC) price, a widely tracked barometer of the largest cryptocurrency's long-term trajectory, is about to lose its bullish momentum ahead of key U.S. jobs data that is set to influence the Federal Reserve's interest-rate outlook. Since late August, the gauge has averaged a daily increase of less than $50, well below the $200-plus moves seen earlier this year, indicating a pause or impending bearish trend change.
The short-term moving averages, namely the 50- and 100-day measures, have already peaked and turned lower. The 100-day SMA recently moved below the 200-day SMA, confirming a bearish crossover. Together, the three signal a weakening in bullish sentiment and growth in caution consistent with increasing macroeconomic uncertainty.
The final flush lower in BTC could set the stage for a bigger rally, according to newsletter service LondonCryptoClub. However, the risk-off mood in the broader financial market is not helping, as the dollar's weakness is not providing as much support to bitcoin as it is to gold, said Alex Kuptsikevish, a senior market analyst at The FxPro.
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