Cryptocurrencies

Bitcoin’s Downward Trend Raises Risk of Moving-Average Breach

  • The cryptocurrency is nearing its 50-day moving average
  • Token tumbled more than 5% to trade below $31,000 Tuesday
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Bitcoin extended losses from its recent record highs as the token tests a price level closely watched by analysts who use historical charts to predict future movements.

The world’s largest cryptocurrency has been trending downward since peaking around $42,000 earlier this month. The coin fell as much as 5.7% Tuesday, dropping below $31,000, and testing its 50-day moving average. A sustained dip below that level could spell trouble for the token.