Crypto

Bitcoin nears critical $35,500 support level as stocks gain on inflation data By Investing.com


© Ink Drop

is hovering perilously close to a significant support level of $35,500 following a market correction triggered by the latest U.S. inflation figures. Despite the Consumer Price Index (CPI) data from the Bureau of Labor Statistics (BLS) for October surpassing expectations and sparking a rally, the leading cryptocurrency has struggled to maintain its upward momentum.

The positive inflation news had a markedly different impact on U.S. stock markets, which saw an infusion of over $700 billion in value. Tech giants like Microsoft (NASDAQ:) and Apple (NASDAQ:) were among the major stocks that benefited from the growth, highlighting a divergence in market dynamics.

Bitcoin’s challenges in staging a recovery are seen by some investors as an indication of a potential shift in trend. This comes even as Bitcoin shows moderate correlations with major indices, recording correlations of 0.25 and 0.33 with the and respectively. However, most of the market inflows have been concentrated outside the cryptocurrency sector.

Adding to concerns for Bitcoin investors is the Moving Average Convergence Divergence (MACD), which is signaling a bearish crossover. This technical indicator is often used to gauge market momentum and potential reversals in asset prices, suggesting that Bitcoin could be facing further downward pressure.

As traditional markets respond positively to the latest economic data, the cryptocurrency market appears to be charting its own course. Investors will be closely monitoring whether Bitcoin can hold the $35,500 level or if it will succumb to bearish trends amidst broader market gains.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Translate »