Bitcoin Rally Loses Steam as 'Death Cross' Formation Persists
The recent rally in Bitcoin has lost momentum, failing to capitalize on favorable macroeconomic conditions.
A disappointing employment report from the US, which showed a net loss of 23,000 jobs in July, was expected to boost risk assets and keep interest rates unchanged by the Federal Reserve. However, this did not translate into a corresponding surge for Bitcoin, which instead merely touched its 50-day moving average before reversing course.
The broader crypto market also failed to benefit from the macroeconomic tailwinds, with most major cryptocurrencies showing relatively flat performance over the past week.
A closer look at the charts reveals that Bitcoin is currently stuck in a 'death cross' formation, where its 50-day moving average remains below its 200-day moving average. This technical indicator suggests that the medium-term trend for Bitcoin is still bearish.