The immediate prospects for bitcoin and the wider crypto market look bleak, with prices trading below key levels, according to some observers.
The largest cryptocurrency is trading below $80,000, less than its 50-day average in a sign of near-term weakness.
“Technical indicators suggest the downtrend is set to continue, as the market sinks further below its 50-day moving average and the resistance zones from May and September have failed to act as support,” Alex Kuptsikevich, the chief market analyst at FxPro, wrote in an email.
Kuptsikevich isn’t alone.
“The key support is the $80,000 zone – a break below that could open the door to $75,000, then $73,000,” Secure Digital Markets said in a daily note.
The Ontario-based firm noted that BTC spent two weeks between $80,000 and $86,000, and its 30-day range has compressed from 13% to 6%. A volatility squeeze of this kind often ends with a sharp move, it said.
As for volatility, options traders on decentralized platform Derive are pricing in some movement around Wednesday’s Fed meeting, though nothing out of the ordinary.