Bitcoin
and other cryptocurrencies slipped Monday amid a risk-off move in wider markets, but digital assets remained above key levels with analysts bullish that a recent uptrend can continue.
The price of Bitcoin has fallen more than 1% over the past 24 hours to near $27,500, retreating from just shy of the $28,000 level seen before the weekend. The largest digital asset remains comfortably above a trading range around $26,000 that had dominated for more than a month until a rally at the end of September, though the token has failed to consolidate gains at its recent peak near $28,500.
“Technically, Bitcoin remains in an uptrend but ran into resistance at its 200-day moving average over the weekend,” said Alex Kuptsikevich, an analyst at broker FxPro. “All eyes will be on Bitcoin to see if it can successfully consolidate above $28,000, the 200-day moving average. If it does, we can expect a quick rise to $29,000 to $29,300.”
Bitcoin was under pressure on Monday amid a wider rotation away from riskier assets—like stocks and cryptos—by investors at the start of the week, with the
Dow Jones Industrial Average
and
S&P 500
poised for losses. The risk-off move comes after an unprecedented attack by terror group Hamas on Israel over the weekend, which has added a major dose of geopolitical risk into global markets.
“If the pressure on risk assets … remains, all eyes will be on the $27,200 to $27,000 area” for Bitcoin, said Kuptsikevich. “Without significant support here, we could be talking about a change from a short-term trend to a downtrend.”
Beyond Bitcoin,
Ether
—the second-largest crypto—shed 2% to below $1,600. Smaller tokens or altcoins also were weak, with
Cardano
down 2% and
Polygon
losing 3%. Memecoins also retreated, with
Dogecoin
dropping 4% and
Shiba Inu
falling 4%.
Write to Jack Denton at [email protected]
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