Bitcoin Trapped Below Moving Averages as Rate Hike Odds Slide

The US economy contracted in July, missing expectations of a 95,000 gain and shedding 23,000 jobs instead. This has led to a decrease in the odds of a September rate hike from 55% to 40%, according to CME FedWatch.

This softer monetary policy stance is typically bullish for risk assets like Bitcoin, but its price chart tells a different story. Despite trading at $64,938 and up 1.06% on the day, it remains below both its short-term and long-term moving averages.

The death cross formation, where the shorter average sits under the longer one, is currently in place for Bitcoin. This technical indicator suggests a medium-term bearish trend. However, some analysts see potential for a rebound if the price can close above the 50-day EMA ($66,000) and challenge the 200-day EMA ($64,000).