The risk selloff since last week is starting to resurface and in the case of cryptocurrencies, the pain is starting to deepen. For Bitcoin, the drop on Friday last week fell short of testing the 200-day moving average (blue line). That before a bounce earlier this week stalled around its 100-day moving average (red line) instead. But amid the latest selloff today, we're starting to see the technical lines crack and that could spell more trouble for the cryptocurrency heading into the weekend.
Bitcoin now trades to fresh lows in four months, dropping just below $104,000. But more importantly, price is threatening a firm break below its 200-day moving average as circled above. This will mark the first time that the cryptocurrency trades under both its key daily moving averages since April.
And amid the surging run in the past six months where it posted as much as 65% gains, are we due a more significant correction?
With the selloff in stocks still running today, this will be a spot to watch as the hurt in risk sentiment is very much amplified in cryptocurrencies.
On a side note, if you've been invested in things like collectibles since the summer, this will be a good litmus test to see how much of an impact cryptocurrencies do have on the spending appetite in that space.
