Cryptocurrencies Dip As Bearish Crossover Looms For Bitcoin

The cryptocurrency markets slipped on Tuesday, extending their action-devoid run as traders awaited a key U.S. inflation report due to be released later on Tuesday.

Bitcoin was trading at $33,176 as of report time, down 2.43 percent in the last 24 hours. The largest cryptocurrency by market cap was holding above price support at $32,000, with $36,400 seen as the upside target. For the past seven weeks, bitcoin has mostly stayed in a range between $30,000 and $40,000. 

However, a chart analysis of long-term moving price averages suggests more bearishness ahead. The cryptocurrency’s 100-day simple moving average (SMA) is about to cross below the 200-day SMA for the first time since May 2020.

The so-called bearish crossover comes weeks after the 50- and 200-day SMAs charted the “death cross.” Bearish crossovers of longer duration averages often lag price action and trap traders on the wrong side of the market.

That said, the absence of solid follow-through to the repeated defense of the $30,000 support in the past few weeks is a cause for concern.

Ether was down 4.48 percent to $2,051 and has been holding on for dear life above the $2,000 mark, while dogecoin was down 4.91 percent and was struggling to stay above 20 cents.