Stacks of bitcoins sit near green lights on a data cable terminal inside a communications room at an office in this arranged photograph in London, U.K., on Tuesday, Sept.
If Bitcoin can’t overtake its 50-day mean — which currently sits at about $57,042 — then it might be in for a period of volatility as the gap between the two trend lines converges.
Trading in the world’s largest digital asset has been choppy in recent days after it hit a record high in mid-April above $64,000.
“The drastic — relative to what we’ve seen of late — pullback certainly was a point of eyebrows being raised, but at the end of the day, I think the fact that things were able to rebound and stabilize is a good thing,” said David Tawil, president of ProChain Capital.
Sam Stovall, chief investment strategist at CFRA Research, describes Bitcoin as a speculative asset, but one that looks to be correlated with the overall stock market.
Despite its recent turbulence, Bitcoin is still up more than 600% over the past year.
While some dispute the idea that Bitcoin can act as an inflation hedge, the argument has been a key tenet for its bullish thesis and rings true for a lot of crypto fans.