Bitcoin's 50-day exponential moving average (EMA) fell back below the 200-day EMA on Friday, effectively canceling the brief golden cross formation. The cryptocurrency retreated to $77,438 after reaching an intraday high of $79,837.
The market reversal follows updated inflation data showing a core monthly reading of 0.3%, exceeding the 0.2% forecast by analysts. Consequently, the probability of a 25-basis-point interest rate hike at the next Federal Reserve meeting rose to 86.5%.
Despite the daily chart reversal, the 4-hour chart maintains its golden cross, which has been in place since late August. However, momentum indicators on the 4-hour timeframe have cooled, with the RSI dropping to 43.3 and volatility expanding by 3.95%.
The daily Average Directional Index (ADX) currently sits at 45, indicating a strong trend, while the RSI remains at 55.5. Bitcoin is still up 1.19% on the day, although it remains below the peak levels observed earlier in the session.
