Key facts
- Bitcoin's 50-day EMA slipped back below its 200-day EMA on Friday evening.
- Bitcoin was trading around $77,438, up 1.19% on the day.
- The monthly core CPI reading was 0.3%, hotter than the expected 0.2%.
- Odds of a 25-basis-point Fed rate hike rose to 86.5%.
Bitcoin's daily golden cross, a bullish technical signal, flickered out on Friday evening as the cryptocurrency's price retreated, undoing an earlier crossover of its 50-day and 200-day exponential moving averages. The digital asset was trading around $77,438, still up 1.19% for the day but significantly off its intraday high near $79,837.
The pullback in Bitcoin coincided with a hawkish repricing in interest rate markets. Following the release of US inflation data, which showed a hotter-than-expected core CPI reading of 0.3% for the month, the odds of a 25-basis-point interest rate hike at the Federal Reserve's upcoming meeting surged to 86.5% according to CME FedWatch. A rate hike typically leads investors to shed riskier assets like Bitcoin and tech stocks.
While the daily chart's golden cross was invalidated, the 4-hour chart's golden cross remained intact. However, momentum indicators on the 4-hour timeframe have cooled, with the Relative Strength Index dropping to 43.3 and the Average Directional Index indicating a weaker intraday trend compared to the daily chart's strong trend strength of 45.