Bitcoin fell below $50k amid general risk aversion
Downbeat moods prevail at the end of the European session. The dollar index rose to 92.4, moving away from one-month lows early in the month, and tracking a rise in Treasury yields which jumped to a 7-week high of 1.38%. Downward pressure is also visible on the precious metal markets where gold lost 1.80% and silver fell 2.60%. There isn't one, clear reason behind today's declines, it seems that concerns over the spread of the coronavirus delta variant and economic slowdown weighed on market sentiment. Over the weekend major Goldman Sachs downgraded growth prospects for the US economy, while today Morgan Stanley slashed its rating on US equities. Cryptocurrencies also suffer heavy losses. Bitcoin failed to break above another major resistance at $53,000 during today's session and price broke below psychological support at $50,000 and is currently testing the lower limit of the 1:1 structure and 200 SMA (red line). Should current sentiment prevail, then declines could deepen towards a major support zone around $44,000.Â
Bitcoin, H4 interval. Source: xStation5
